Financial Statement Analysis Project This is an individual project. Please calculate the ratios for 2019 and prepare an analysis of where the company is now, where the strengths are and the weaknesses are, what it must do to regain its financial health, and what actions should be taken. Please submit on letter size paper and include detailed math calculation steps, final results, clear verbal explanation on weaknesses and strengths, and your recommendations. Your paper should be about 5 pages double spaced with font size no bigger than 12. The project is due on October 30 with a hardcopy turned in class and you are also required to upload the paper to Canvas. Failure to do either will give you zero point for the project. Balance Sheets 2019 Assets Cash Short-Term Investments. Accounts Receivable Inventories Total Current Assets Gross Fixed Assets Less: Accumulated Depreciation Net Fixed Assets Total Assets 2017 2018 9,000 $ 7,282 $ 14,000 48,600 20,000 71,632 351,200 632,160 878,000 715,200 1.287,360 1,716.480 $ 1,124.000 $ 1.946,802 $ 2,680.112 491,000 1.202,950 1,220.000 146,200 263,160 383,160 $ 344,800 $ 939,790 $ 836,840 $ 1,468,800 $ 2.886,592 $ 3,516,952 Liabilities And Equity 2017 2018 2019 Accounts Payable $ 145,600 $ 324,000 $ 359,800 Notes Payable 200,000 720,000 300,000 Accruals 136,000 284,960 380.000 Total Current Liabilities $ 481,600 $ 1,328,960 $ 1,039,800 Long-Term Debt 323,432 1,000,000 500.000 Common Stock (100,000 Shares) 460,000 460,000 1,680,936 Retained Earnings 203,768 97,632 296,216 Total Equity $ 663,768 $ 557,632 $ 1,977,152 Total Liabilities And Equity $ 1,468,800 $ 2,886,592 $ 3,516,952 Income Statements Sales Cost Of Goods Sold Other Expenses Depreciation 2017 2018 2019 $ 3,432,000 $5,834,400 $ 7,035,600 2,864,000 4.980,000 5,800,000 340,000 720,000 612.960 18,900 116,960 120,000 Total Operating Costs $ 3,222,900 $ 5.816,960 $ 6,532,960 EBIT $ 209,100 $ 17,440 $ 502,640 Interest Expense 62,500 176,000 80,000 EBT $ 146,600 $ (158,560) $ 422,640 Taxes (40%) 58,640 (63,424) 169,056 Net Income $ 87,960 $ (95.136) S 253.584 Other Data Stock Price Shares Outstanding EPS DPS Tax Rate Book Value Per Share $ Lease Payments $ 2017 8.50 $ 100.000 0.880 $ 0.220 $ 40% 6.638 $ 40,000 $ 2018 6.00 $ 100,000 (0.951) $ 0.110 $ 40% 5.576 $ 40,000 $ 2019 12.17 250.000 1.014 0.220 40% 7.909 40,000 2019 2017 2.3 Industry Average 2.7 1.0 0.8 4.8 6.1 32.0 10.0 7.01 Ratio Analysis Current Quick Inventory Turnover Days Sales Outstanding Fixed Assets Turnover Total Assets Turnover Debt to Invested Capital TIE Profit Margin Basic Earning Power ROA ROE Price/Earnings (P/E) Market/Book 2.3 44.1% 3.31 2.6% 14.2% | 6.0% 13.3%) 9.7|| 1.31 2018 1.5 0.5 4.5 39.5 6.2 2.0 75.5% 0.1 -1.6% 0.6% -3.3% -17.1% -6.3 1.11 2.5 40.0% 6.2 3.6% 17.8% 9.0% 17.9% 16.2 2.9 Financial Statement Analysis Project This is an individual project. Please calculate the ratios for 2019 and prepare an analysis of where the company is now, where the strengths are and the weaknesses are, what it must do to regain its financial health, and what actions should be taken. Please submit on letter size paper and include detailed math calculation steps, final results, clear verbal explanation on weaknesses and strengths, and your recommendations. Your paper should be about 5 pages double spaced with font size no bigger than 12. The project is due on October 30 with a hardcopy turned in class and you are also required to upload the paper to Canvas. Failure to do either will give you zero point for the project. Balance Sheets 2019 Assets Cash Short-Term Investments. Accounts Receivable Inventories Total Current Assets Gross Fixed Assets Less: Accumulated Depreciation Net Fixed Assets Total Assets 2017 2018 9,000 $ 7,282 $ 14,000 48,600 20,000 71,632 351,200 632,160 878,000 715,200 1.287,360 1,716.480 $ 1,124.000 $ 1.946,802 $ 2,680.112 491,000 1.202,950 1,220.000 146,200 263,160 383,160 $ 344,800 $ 939,790 $ 836,840 $ 1,468,800 $ 2.886,592 $ 3,516,952 Liabilities And Equity 2017 2018 2019 Accounts Payable $ 145,600 $ 324,000 $ 359,800 Notes Payable 200,000 720,000 300,000 Accruals 136,000 284,960 380.000 Total Current Liabilities $ 481,600 $ 1,328,960 $ 1,039,800 Long-Term Debt 323,432 1,000,000 500.000 Common Stock (100,000 Shares) 460,000 460,000 1,680,936 Retained Earnings 203,768 97,632 296,216 Total Equity $ 663,768 $ 557,632 $ 1,977,152 Total Liabilities And Equity $ 1,468,800 $ 2,886,592 $ 3,516,952 Income Statements Sales Cost Of Goods Sold Other Expenses Depreciation 2017 2018 2019 $ 3,432,000 $5,834,400 $ 7,035,600 2,864,000 4.980,000 5,800,000 340,000 720,000 612.960 18,900 116,960 120,000 Total Operating Costs $ 3,222,900 $ 5.816,960 $ 6,532,960 EBIT $ 209,100 $ 17,440 $ 502,640 Interest Expense 62,500 176,000 80,000 EBT $ 146,600 $ (158,560) $ 422,640 Taxes (40%) 58,640 (63,424) 169,056 Net Income $ 87,960 $ (95.136) S 253.584 Other Data Stock Price Shares Outstanding EPS DPS Tax Rate Book Value Per Share $ Lease Payments $ 2017 8.50 $ 100.000 0.880 $ 0.220 $ 40% 6.638 $ 40,000 $ 2018 6.00 $ 100,000 (0.951) $ 0.110 $ 40% 5.576 $ 40,000 $ 2019 12.17 250.000 1.014 0.220 40% 7.909 40,000 2019 2017 2.3 Industry Average 2.7 1.0 0.8 4.8 6.1 32.0 10.0 7.01 Ratio Analysis Current Quick Inventory Turnover Days Sales Outstanding Fixed Assets Turnover Total Assets Turnover Debt to Invested Capital TIE Profit Margin Basic Earning Power ROA ROE Price/Earnings (P/E) Market/Book 2.3 44.1% 3.31 2.6% 14.2% | 6.0% 13.3%) 9.7|| 1.31 2018 1.5 0.5 4.5 39.5 6.2 2.0 75.5% 0.1 -1.6% 0.6% -3.3% -17.1% -6.3 1.11 2.5 40.0% 6.2 3.6% 17.8% 9.0% 17.9% 16.2 2.9