Financial Statement Analysis Project

Instructions:

1. Calculate financial ratios for Raiders, Inc. for 2022.
2. Written report:
   1. Prepare an analysis of where the company is in terms of its financial ratios, what the strengths and weaknesses are, what it must do to regain its financial health, and what actions should be taken.
   2. For each ratio, provide detailed calculations, discuss how the ratio has changed over time, and discuss how the ratio compares to the industry average.
   3. In your report, present your final results, clear explanations on weaknesses and strengths, and your recommendations for improvement.
   4. Please submit a 3 4 page report (Times New Roman font, size 12, double-spaced).

Balance Sheets \begin{tabular}{|c|c|c|c|c|} \hline Assets & & 2020 & 2021 & 2022 \\ \hline Cash & $ & 9,000 & 7,282 & 14,000 \\ \hline Short-Term Investments. & & 48,600 & 20,000 & 71,632 \\ \hline Accounts Receivable & & 351,200 & 632,160 & 878,000 \\ \hline Inventories & & 715,200 & 1,287,360 & 1,716,480 \\ \hline Total Current Assets & & 1,124,000 & $1,946,802 & $2,680,112 \\ \hline Gross Fixed Assets & & 491,000 & 1,202,950 & 1,220,000 \\ \hline Less: Accumulated Depreciation & & 146,200 & 263,160 & 383,160 \\ \hline Net Fixed Assets & $ & 344,800 & $939,790 & 836,840 \\ \hline Total Assets & & 1,468,800 & \begin{tabular}{l} $2,886,592 \\ \end{tabular} & $3,516,952 \\ \hline Liabilities and Equity & & 2020 & 2021 & 2022 \\ \hline Accounts Payable & $ & 145,600 & $324,000 & 359,800 \\ \hline Notes Payab & & 200,000 & 720,000 & 300,000 \\ \hline Accruals & & 136,000 & 284,960 & 380,000 \\ \hline Total Current Liabilities & $ & 481,600 & $1,328,960 & $1,039,800 \\ \hline Long-Term Debt & & 323,432 & 1,000,000 & 500,000 \\ \hline Common Stock (100,000 Shares) & & 460,000 & 460,000 & 1,680,936 \\ \hline Retained Earnings & & 203,768 & 97,632 & 296,216 \\ \hline Total Equity & $ & 663,768 & $557,632 & $1,977,152 \\ \hline Total Liabilities And Equity & $ & 1,468,800 & $2,886,592 & $3,516,952 \\ \hline \end{tabular} Income Statements \begin{tabular}{|c|c|c|c|c|c|c|} \hline & \multicolumn{2}{|r|}{2020} & \multicolumn{2}{|r|}{2021} & \multicolumn{2}{|r|}{2022} \\ \hline Sales & $ & 3,432,000 & & 5,834,400 & $ & 7,035,600 \\ \hline Cost Of Goods Sold & & 2,864,000 & & 4,980,000 & & 5,800,000 \\ \hline Other Expenses & & 340,000 & & 720,000 & & 612,960 \\ \hline Depreciation & & 18,900 & & 116,960 & & 120,000 \\ \hline Total Operating Costs & $ & 3,222,900 & & 5,816,960 & & 6,532,960 \\ \hline EBIT & $ & 209,100 & $ & 17,440 & $ & 502,640 \\ \hline Interest Expense & & 62,500 & & 176,000 & & 80,000 \\ \hline EBT & $ & 146,600 & & (158,560) & $ & 422,640 \\ \hline Taxes (40%) & & 58,640 & & (63,424) & & 169,056 \\ \hline Net Income & $ & 87,960 & $ & (95,136) & $ & 253,584 \\ \hline Other Data & & 2020 & & 2021 & & 2022 \\ \hline Stock Price & $ & 8.50 & $ & 6.00 & $ & 12.17 \\ \hline Shares Outstanding & & 100,000 & & 100,000 & & 250,000 \\ \hline EPS & $ & 0.880 & $ & (0.951) & $ & 1.014 \\ \hline DPS & $ & 0.220 & $ & 0.110 & $ & 0.220 \\ \hline Tax Rate & & 40% & & 40% & & 40% \\ \hline Book Value Per & $ & 6.638 & $ & 5.576 & $ & 7.909 \\ \hline Lease Payments & $ & 40,000 & $ & 40,000 & $ & 40,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline Ratio Analysis & 2020 & 2021 & 2022 & Industry Average \\ \hline Current & 2.3 & 1.5 & & 2.7 \\ \hline Quick & 0.8 & 0.5 & & 1.0 \\ \hline Inventory Turnover & 4.8 & 4.5 & & 6.1 \\ \hline Days Sales Outstanding & 37.4 & 39.5 & & 32.0 \\ \hline Fixed Assets Turnover & 10.0 & 6.2 & & 7.0 \\ \hline Total Assets Turnover & 2.3 & 2.0 & & 2.5 \\ \hline Debt to Invested Capital & 44.1% & 75.5% & & 40.0% \\ \hline TIE & 3.3 & 0.1 & & 6.2 \\ \hline Profit Margin & 2.6% & 1.6% & & 3.6% \\ \hline Basic Earning Power & 14.2% & 0.6% & & 17.8% \\ \hline ROA & 6.0% & 3.3% & & 9.0% \\ \hline ROE & 13.3% & 17.1% & & 17.9% \\ \hline Price/Earnings (P/E) & 9.7 & -6.3 & & 16.2 \\ \hline Market/Book & 1.3 & 1.1 & & 2.9 \\ \hline \end{tabular}