Financial analys) The LP. Jarmon Company manufactures and sells a line of exclusive sportswear The firm's sales were $001,000 for the year just ended, and its total assets was 5407 190 The company was started by Mr. Jarmon just 10 years ago and has been profitable wery year since its inception. The chief financial officer for the firm Brent Vahim han decided to see a line of crede totating 595.000 from the firm's baik. In the past, the company has reled on its suppliers to finance a large part of its need for inventory. However, in recent months tight money conditions aveled the firm's suppliers to offer able coounta to speed up payment for purchases Mr. Volim wants to use the line of credit to replace a large portion of the firm poyables during the summer, which is the film's peak seasonal sales period The fritivo most recent balance sheets were presented to the bank in support of its own request. In addition, the firm's incomestament for the year just ended was provided. These demants are found in the popup window Mike Ameen, associate credit analyst for the Merchants National Bank of Midland, Michigan was assigned the task of analyzing Jamon's on request a. Calculate the financiration for 2018 corresponding to the industry norms provided in the popup Window b. Which of the ratios reported in the industry norms do you feel should be most crucial in determining whether the bank should extend the line of credit e. Prepare Jarmon's statement of cash flow for the yoor ended December 31, 2018 d. Use the information provided by the financial ratios and the cash fow statement to decide if you would support making the loan T.P. Jarmon Company, Balance Sheet for 12/31/2017 and 12/31/2018 ASSETS 2017 2018 Cash 15,000 13,960 Marketable securities 6,000 6,230 32,900 Accounts receivable 42,000 Inventory 51,000 1,200 84,000 1,100 Prepaid rent Total current assets $ GA 115,200 286,000 138,190 269,700 Net plant and equipment $ 401,200 $ 407,890 Total assets LIABILITIES AND OWNERS' EQUITY Accounts payable 48,000 57,010 Notes pavable 15.000 12.950 LIABILITIES AND OWNERS' EQUITY $ 48,000 57,010 Accounts payable Notes payable 15,000 6,000 12,950 4,940 Accruals Total current liabilities 74,900 Long-term debt 69,000 160,000 172,200 137,206 195,784 Common stockholders' equity $ Total liabilities and equity 401,200 $ 407,890 T.P. Jarmon Company, Income Statement for the Year Ended 12/31/2018 Sales (all credit) $ 601,000 461,000 Less cost of goods sold Gross profit $ 140,000 Data Table Gara moru 461,000 $ 140,000 Less cost of goods sold Gross profit Less operating and interest expenses General and administrative $ 29,900 Interest 10,500 30,000 Depreciation Total $ 70,400 Earnings before taxes $ 69,600 14,616 Less taxes Net income available to common stockholders $ 54,984 31,400 Less cash dividends $ 23,584 Change in retained earnings (Click on the following icon in order to copy its contents into a spreadsheet.) RATIO Current ratio Acid-test ratio Debt ratio Times interest earned Average collection period Inventory turnover (based on cost of goods sold) Return on common equity Operating return on assets Operating profit margin Total asset turnover Fixed asset turnover NORM 1.80 0.90 0.47 9.00 19.00 7.01 16.7% 16.8 % 14.0% 1.20 1.80 Fanya) The T. Jarmon Company manufactures and sain of exclusive Sportswear. These were 5601,000 for the year just ended, and its totalt set was $407.000 The company was Marted by Mr. Jarmon 10 years ago and has been profitable every year since its inception. The chief financial officer for the firm Bront Ventimhan decided to line of creating 55.000 from the firm's bank in the past the company has relied ons suppliers to finance aloge part of its needs for inventory. However, in recent monthshmoney conditions hared the firm's suppliers to offer sizable cash discounts to speed up aynions for purchases Mr. Vehim wants to use the line of credit to place a large portion of the impayablosung wer, which is the firm's peak seasonal penod The two most recent balance sheets were presented to the bank in support of its on request. In addition, the film's income statement for the year just onded was provided. The statement au found in the popup window. Mike Amon, sociale credit analyst for the Merchants National Bank of Midland, Michigan, was signed the task of analyzing demont a Calculate the tranciat ration for 2014. coresponding to the industry norms provided in the popup window t. Which of the ratios reported in the industry nome do you feel should be most crucial indetermining whether the bank should extend the line of credit? c. Prepare Jarmon's statement of cash flow for the year ended December 31, 2018 d. Use the information provided by the financial matics and the cash flow statement to decide if you would support making the loan Financial analys) The LP. Jarmon Company manufactures and sells a line of exclusive sportswear The firm's sales were $001,000 for the year just ended, and its total assets was 5407 190 The company was started by Mr. Jarmon just 10 years ago and has been profitable wery year since its inception. The chief financial officer for the firm Brent Vahim han decided to see a line of crede totating 595.000 from the firm's baik. In the past, the company has reled on its suppliers to finance a large part of its need for inventory. However, in recent months tight money conditions aveled the firm's suppliers to offer able coounta to speed up payment for purchases Mr. Volim wants to use the line of credit to replace a large portion of the firm poyables during the summer, which is the film's peak seasonal sales period The fritivo most recent balance sheets were presented to the bank in support of its own request. In addition, the firm's incomestament for the year just ended was provided. These demants are found in the popup window Mike Ameen, associate credit analyst for the Merchants National Bank of Midland, Michigan was assigned the task of analyzing Jamon's on request a. Calculate the financiration for 2018 corresponding to the industry norms provided in the popup Window b. Which of the ratios reported in the industry norms do you feel should be most crucial in determining whether the bank should extend the line of credit e. Prepare Jarmon's statement of cash flow for the yoor ended December 31, 2018 d. Use the information provided by the financial ratios and the cash fow statement to decide if you would support making the loan T.P. Jarmon Company, Balance Sheet for 12/31/2017 and 12/31/2018 ASSETS 2017 2018 Cash 15,000 13,960 Marketable securities 6,000 6,230 32,900 Accounts receivable 42,000 Inventory 51,000 1,200 84,000 1,100 Prepaid rent Total current assets $ GA 115,200 286,000 138,190 269,700 Net plant and equipment $ 401,200 $ 407,890 Total assets LIABILITIES AND OWNERS' EQUITY Accounts payable 48,000 57,010 Notes pavable 15.000 12.950 LIABILITIES AND OWNERS' EQUITY $ 48,000 57,010 Accounts payable Notes payable 15,000 6,000 12,950 4,940 Accruals Total current liabilities 74,900 Long-term debt 69,000 160,000 172,200 137,206 195,784 Common stockholders' equity $ Total liabilities and equity 401,200 $ 407,890 T.P. Jarmon Company, Income Statement for the Year Ended 12/31/2018 Sales (all credit) $ 601,000 461,000 Less cost of goods sold Gross profit $ 140,000 Data Table Gara moru 461,000 $ 140,000 Less cost of goods sold Gross profit Less operating and interest expenses General and administrative $ 29,900 Interest 10,500 30,000 Depreciation Total $ 70,400 Earnings before taxes $ 69,600 14,616 Less taxes Net income available to common stockholders $ 54,984 31,400 Less cash dividends $ 23,584 Change in retained earnings (Click on the following icon in order to copy its contents into a spreadsheet.) RATIO Current ratio Acid-test ratio Debt ratio Times interest earned Average collection period Inventory turnover (based on cost of goods sold) Return on common equity Operating return on assets Operating profit margin Total asset turnover Fixed asset turnover NORM 1.80 0.90 0.47 9.00 19.00 7.01 16.7% 16.8 % 14.0% 1.20 1.80 Fanya) The T. Jarmon Company manufactures and sain of exclusive Sportswear. These were 5601,000 for the year just ended, and its totalt set was $407.000 The company was Marted by Mr. Jarmon 10 years ago and has been profitable every year since its inception. The chief financial officer for the firm Bront Ventimhan decided to line of creating 55.000 from the firm's bank in the past the company has relied ons suppliers to finance aloge part of its needs for inventory. However, in recent monthshmoney conditions hared the firm's suppliers to offer sizable cash discounts to speed up aynions for purchases Mr. Vehim wants to use the line of credit to place a large portion of the impayablosung wer, which is the firm's peak seasonal penod The two most recent balance sheets were presented to the bank in support of its on request. In addition, the film's income statement for the year just onded was provided. The statement au found in the popup window. Mike Amon, sociale credit analyst for the Merchants National Bank of Midland, Michigan, was signed the task of analyzing demont a Calculate the tranciat ration for 2014. coresponding to the industry norms provided in the popup window t. Which of the ratios reported in the industry nome do you feel should be most crucial indetermining whether the bank should extend the line of credit? c. Prepare Jarmon's statement of cash flow for the year ended December 31, 2018 d. Use the information provided by the financial matics and the cash flow statement to decide if you would support making the loan