Financial Statement Analysis Analyze trends; calculate and interpret ratios; evaluate earnings quality Selected data from Tompkin Furniture, Inc., follows 2017 Selected balance sheet data 2018 2016 2015 2,800 $3,0004,200 Cash Marketable securities 400 600 500 5,100$ 4,800 3,000 Accounts receivable, net 6,700 6,000 6,300 Inventory 4,200 3,200 13,000 9,200 22,200 Total current assets 15,900 14,100 Long-term assets 6,900 7,800 Total assets 22,800 21,900 Accounts payable Short-term notes payable 3,500 2,300 1,500 1,900 6,000 4,600 3,750 5,250 Total current liabilities 9,500 6,900 Total long-term liabilities 265 2,725 6,982 2017 Selected income statement data 2018 2016 2015 34,500 $33,00032,100$31,500 Net sales revenue (assume all sales are credit sales) Cost of goods sold Operating expenses Interest expense 20,700 15,840 14,445 12,500 13,500 13,700 150 255 300 390 Income taxes 1,098 1,187 Use the blue shaded areas on the ENTERANSWERS tab for inputs Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong Requirements 1 Perform a trend analysis on Tompkin's sales revenue, inventory, and receivables over the past three years, using 2015 as the base 2 Calculate the gross profit, operating income, and net income over the past three years a. Use cell references from prior calculations, if applicable 3 Calculate the ratios to be used to analyze Tompkin's performance over the past three years in the following areas: a Liquidity; b. Turnover; c. Overall debt payment ability a. Use cell references from prior calculations, if applicable b. Take the number of days in the year equal to 365 4 Calculate the ratios to be used to evaluate Tompkin's quality of earnings a. Use cell references from prior calculations, if applicable 1. Perform a trend analysis on Tompkin's sales revenue, inventory, and receivables over the past three years, using 2015 as the base. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong.) Tompkin Furniture, Inc. Trend Percentages 2018 2017 2015 2016 Net sales revenue Inventor Net receivables 2. Calculate the gross profit, operating income, and net income over the past three years (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Use cell references from prior calculations, if applicable.) 2018 2017 2016 Gross profit Operating income Net income 3. Calculate the ratios to be used to analyze Tompkin's performance over the past three years in the following areas (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Use cell references from prior calculations, if applicable.) 2017 a. Liquidity Current ratio Quick ratio 2018 2016 b. Turnover Inventory turnover Days' inventory outstandin Accounts receivable turnover Days' sales outstanding Accounts payable turnover Days' payables outstandin Cash conversion cycle c. Overall debt payment ability Debt ratio Times-interest-earned ratio 4. Calculate the ratios to be used to evaluate Tompkin's quality of earnings. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Use cell references from prior calculations, if applicable.) 2018 Ratio 2017 2016 Gross profit/sales Net income/ sales Operating income/sales Operating expenses/sales
