FINANCIAL STATEMENT ANALYSIS

Task

Green toys

Green Toys It is a multinational retailer of environmentally friendly toys. They have developed a technique for recycling materials and produce their own toys, which they sell in countries on every continent. It is a medium to large family business. The owner and CEO of the company is thinking of retiring and leaving the business to his children. He has asked the CFO (i.e. you) for a report.

Green Toys Balance Sheet
(in thousands except share data)
Fiscal Year Ended		Dec. 31, 2021		Dec. 31, 2020
ASSETS
Current assets:
Cash and cash equivalents		$1.369		$1.427
Accounts receivable, net		1.008		876
Inventories		1.489		481
Prepaid expenses and other current assets		157		126
Deferred income taxes, net		44		40
Total current assets		4.066		2.950
Property, plant and equipment, net		3.137		2.287
Other assets		168		161
TOTAL ASSETS		$7.371		$5.398
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$429		$242
Accrued compensation and related costs		104		98
Accrued taxes		132		141
Current portion of long-term debt		89		82
Total current liabilities		754		563
Long-term debt		2.630		1.830
Total liabilities		3.384		2.392
Shareholders' equity:
Common stock ($0.1par value) authorized, 4,000,000shares; issued and outstanding, 3,500,000.		350		350
Paid-in capital in excess of par		2.415		2.415
Retained earnings		1.222		241
Total shareholders' equity		3.987		3.006
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$7.371		$5.398

Green Toys Corporation Consolidated Statement of Earnings
(in thousands, except earning per share)
Fiscal year ended:	Dec. 31, 2021		Dec. 31, 2020
Net revenues
	Cash Sales	$2.888		$2.751
	Credit Sales	6.046		5.258
	Total Net Revenues	8.935	-	8.009	-
Cost of Sales	5.361		4.405
	Gross Profit	3.574	-	3.604	-
Salaries	1.258		1.183
Insurance	155		116
Depreciation	150		135
General and administrative expenses	489		479
	Subtotal operating expenses	2.052	-	1.913	-
Operating income	1.522	-	1.691	-
Interest expense	10		11
	Earnings before income taxes	1.512	-	1.680	-
Income taxes	529	-	588	-
Net Earnings	$983	$-	$1.092	$-
Per Common Share
	Net Earnings Basic	$0,28		$0,31
	Net Earnings Diluted	$0,25		$0,27
Weighted average shares outstanding:
	Basic	3.500		3.500
	Diluted	4.000		4.000

Question

Based on the information Above write an analyses of:

1. The liquidity of the company
2. The efficiency of the company
3. The leverage of the company
4. The profitability of the company