Donna Jamison was recently hired as a financial analyst by Computron Industries, a manufacturer of electronic components. Her first task was to conduct a financial analysis of the firm covering the last two years. For this assignment, you will be taking on the role of Donna Jamison. You should use this updated NO PASS COMPUTRON CASE STUDY. It contains all the compiled financial statements and other data needed to compute the financial information for this case study, and without the need for a password. 1. Perform a Vertical Analysis of BOTH the 2015 and 2016 Income Statements. 2. Perform a Horizontal Analysis of the 2016 Balance Sheet vs. 2015 Balance Sheet ONLY. 3. Calculate and compare ratios for 2016 only with Industry Averages using the following judgmental observations: Computron is BETTER, WORSE, or MEH!.

Assets Cash Accounts Receivable Inventories Total Current Assets Gross Fixed Assets Less: Accum Depreciation Net Fixed Assets Total Assets $ 52,000 $ 402,000 836,000 1,290,000 527,000 166,200 360,800 $1,650,800 $ 57,600 351,200 715,200 1,124,000 491,000 146,200 344,800 1,468,800 Liabilities & Equity Accounts Payable Notes Payable Accruals Total Current Liabilities Long-term debt Common Stock (100,000 shares) Retained Earnings Total Equity Total Liabilities & Equity $ 175,200 $ 225,000 140,000 540,200 424,612 460,000 225,988 685,988 $ 1,650,800 $ 145,600 200,000 136,000 481,600 323,432 460,000 203,768 663,768 1,468,800 Income Statements Sales Cost of Goods Sold Other Expenses Depreciation Total Operating costs EBIT Interest Expense EBT Taxes (40%) Net Income EPS (Earnings Per Share) $ 3,850,000 $ 3,250,000 430,300 20,000 3,700,300 149,700 76,000 73,700 29,480 $ 44,220 $ $ 0.442 $ 3,432,000 2,864,000 340,000 18,900 3,222,900 209,100 62,500 146,600 58,640 87,960 0.880 $ Other Data December 31 Stock Price Number of Shares Dividends per share Lease Payments 6.00 $ 100,000 0.22 $ 40,000 $ 8.50 100,000 0.22 40,000 $ $ Industry Average Data for 2016: Current Quick Inventory Turnover Days Sales Outstanding (DSO) Fixed Asset Turnover Total Asset Turnover Debt Ratio TIE Net Profit Margin ROA ROE Price/Earnings Market/Book Industry Ave. COMPUTRON 2.7% 1.0x 6.0x 32.0 days 10.7% 2.6x 50.00% 2.5X 3.50% 9.10% 18.20% 14.2x 1.4x Assets Cash Accounts Receivable Inventories Total Current Assets Gross Fixed Assets Less: Accum Depreciation Net Fixed Assets Total Assets $ 52,000 $ 402,000 836,000 1,290,000 527,000 166,200 360,800 $1,650,800 $ 57,600 351,200 715,200 1,124,000 491,000 146,200 344,800 1,468,800 Liabilities & Equity Accounts Payable Notes Payable Accruals Total Current Liabilities Long-term debt Common Stock (100,000 shares) Retained Earnings Total Equity Total Liabilities & Equity $ 175,200 $ 225,000 140,000 540,200 424,612 460,000 225,988 685,988 $ 1,650,800 $ 145,600 200,000 136,000 481,600 323,432 460,000 203,768 663,768 1,468,800 Income Statements Sales Cost of Goods Sold Other Expenses Depreciation Total Operating costs EBIT Interest Expense EBT Taxes (40%) Net Income EPS (Earnings Per Share) $ 3,850,000 $ 3,250,000 430,300 20,000 3,700,300 149,700 76,000 73,700 29,480 $ 44,220 $ $ 0.442 $ 3,432,000 2,864,000 340,000 18,900 3,222,900 209,100 62,500 146,600 58,640 87,960 0.880 $ Other Data December 31 Stock Price Number of Shares Dividends per share Lease Payments 6.00 $ 100,000 0.22 $ 40,000 $ 8.50 100,000 0.22 40,000 $ $ Industry Average Data for 2016: Current Quick Inventory Turnover Days Sales Outstanding (DSO) Fixed Asset Turnover Total Asset Turnover Debt Ratio TIE Net Profit Margin ROA ROE Price/Earnings Market/Book Industry Ave. COMPUTRON 2.7% 1.0x 6.0x 32.0 days 10.7% 2.6x 50.00% 2.5X 3.50% 9.10% 18.20% 14.2x 1.4x