Financial Statement Assignment #2 ACCT200-07/-09 Fall 2021 Instructions for Phase C Use your graded financial statements (from Phase B of this assignment) to prepare a ratio analysis for Summer Corporation for 2020 versus 2019. You will also need Summer's 2019 financial statements and selected data from 2018 (needed for certain ratio computations including the 2019 averages within son The 2019 financial statements can be found in the Libby textbook on page 714 - they are the Year 1 amounts within AP 13-5. The 2018 selected financial data includes the following: Total Stockholders' Equity at 12/31/18 $ 101,000 Total Assets at 12/31/18 150,000 Total Net PP&E at 12/31/18 110,000 Total Net Accounts Receivable at 12/31/18 28,000 Total Inventory a 12/31/18 19,000 Other financial information needed for 2020 and 2019: Dividends Paid during 2019 10,000 Market price per share of Summer stock in both 2020 and 2019 1,100 It is recommended that you print the ratio table (on the next tab of this Excel workbook), then manually insert the formulas, calculations, and results. Hint: All boxes" in the Ratios worksheet (on the next tab) should be populated with information as indicated in the column headings for formulas, calculatio One of the ratios, Working Capital has been completed as an example. Other instructions: Please highlight in yellow any ratio results where Summer has experienced an unfavorable trend from 2019 to 2020 Round your ratio results to two decimal places. For those ratios that are expressed as percentages, first convert the result to a percentage, then round Note that you are not required to compute any of the cash flow ratios (Quality of Income Ratio and Cash Coverage Ratio) Recall from Phase A that all of Summer's sales are on credit, and that all stock transactions are unchanged from 2016 through 2020 An electronic submission is required, but it must be handwritten. See Canvas for more information It is recommended that you use pencil in case you need to make erasures as you work through this assignment ASSETS: Currgnt Assets: Casita 800 Accounts Receivable, Net 49.000 Merchandise Inventory 25 200 - Prepaid Insurance 200 Total Current Assets 74000 - Balance Sheet Summer Corporation December 31, 2020 LIABILITIES Current Liabilities Accounts Payable 1,000 Income Taxes Payable 1,000 Total Current Liabilities, Non-current Assets: Property, Plant & Equipment, Net 130 COO Non-current Liabilities: Bonds Payable "OCCO 10.000 Total Liabilities 88,000 STOCKHOLDERS' EQUITY Common Stock 1.000 Additional Paid-in Capital 22.000 Retained Earnings DOOD Total Stockholders' Equity 000 - Total abilities & Stockholders' Equity Total Assets 20 sampe Statement of Stockholders' Equity Summer Corporation For the Year Ended December 31, 2020 Common Stock Additional Paid-in Capital $99.000 Retained Earnings $ 3.000 Total Stockholders' Equity 100.000 $1,000 December 31, 2019 Stock Issued Net Income Dividends December 31, 2020 25,00 S11200) 200 35.000 (1200 + 1000 799.000 $16.000 I wrote rex ble lines follow Income Statement Summer Corporation For the Year Ended December 31, 2020 Net Sales Revenues 459.000 Cost of Goods Sold 200.000 Gross Profit 203,000 Operating Expenses: Salaries & Wages Expense qy000- Warranty Expense 87.000 Depreciation Expense 10000 Utilities Expense 8.000 Advertising Expense 7.000 Payroll Tax Expense 6,500 Insurance Expense 3,300 Rent Expense 1,800 Repairs & Maintenance Expense DOO Bank Service Expense 500 Total Operating Expenses and Income from Operations 45.000 Other Expenses: Interest Expense robe COD Income Before Taxes 36,000 Income Tax Expense 10.800 Net Income 35200 dol Summer Corporation Ratio Analysis 2019 Results 2020 2312 Profitability Ratios: Return on Equity (Percentage) 2019 calculation 25,200/109,000 26,600 | 26.21% 26.10%0.50 23.12% Return on Assets (Percentage) 28,200/ Gross Profit Percentage (Percentage) Net Profit Margin (Percentage) Earnings per Share Formula 2020 Calculation Nct income Perdoc 001 STOC Folder court net income Average total Gross profit 203.000 NET SOLCS 453,000 C [ net Sales net income weighted AVCTORS nunc oe con SOS Custod Net Sales Average total assets Net Sales Average wet pps NT creat soves Average Hicons COGS Average inventory Turnover (Efficiency) Ratios: Total Asset Turnover Ratio Fixed Asset Turnover Ratio Receivable Turnover Ratio Inventory Turnover Ratio Liquidity Ratios: Working Capital 5 Current Assets. Current Labs 56,000 32.000 74,000 - 18.000 $ 51,000 - 19,000 Current Ratio current asser Fixed Asset Turnover Ratio Receivable Turnover Ratio Net Sales Average wet POEG Ny Credit Saves Average Accounts 120 COGS Average inventory Inventory Turnover Ratio Liquidity Ratios: Working Capital Current Assets - Current Liabs. 74,000 -18,000 $ 56,000 $ 32,000 51,000 - 19,000 Current Ratio current asser current liabilitie concos qui. F Current est te Curt Listed Quick Ratio Solvency Ratios Times Interest Earned Ratio Debt-to-Equity Ratio Market Ratios: Price/Earnings Ratio CONTACTOS cxpense to expect Interest expense Total Loialities Stockindider's equity market price por Shot earnings per shard dividends per share market price per Shoxe Dividend Yield Ratio (Percentage) Financial Statement Assignment #2 ACCT200-07/-09 Fall 2021 Instructions for Phase C Use your graded financial statements (from Phase B of this assignment) to prepare a ratio analysis for Summer Corporation for 2020 versus 2019. You will also need Summer's 2019 financial statements and selected data from 2018 (needed for certain ratio computations including the 2019 averages within son The 2019 financial statements can be found in the Libby textbook on page 714 - they are the Year 1 amounts within AP 13-5. The 2018 selected financial data includes the following: Total Stockholders' Equity at 12/31/18 $ 101,000 Total Assets at 12/31/18 150,000 Total Net PP&E at 12/31/18 110,000 Total Net Accounts Receivable at 12/31/18 28,000 Total Inventory a 12/31/18 19,000 Other financial information needed for 2020 and 2019: Dividends Paid during 2019 10,000 Market price per share of Summer stock in both 2020 and 2019 1,100 It is recommended that you print the ratio table (on the next tab of this Excel workbook), then manually insert the formulas, calculations, and results. Hint: All boxes" in the Ratios worksheet (on the next tab) should be populated with information as indicated in the column headings for formulas, calculatio One of the ratios, Working Capital has been completed as an example. Other instructions: Please highlight in yellow any ratio results where Summer has experienced an unfavorable trend from 2019 to 2020 Round your ratio results to two decimal places. For those ratios that are expressed as percentages, first convert the result to a percentage, then round Note that you are not required to compute any of the cash flow ratios (Quality of Income Ratio and Cash Coverage Ratio) Recall from Phase A that all of Summer's sales are on credit, and that all stock transactions are unchanged from 2016 through 2020 An electronic submission is required, but it must be handwritten. See Canvas for more information It is recommended that you use pencil in case you need to make erasures as you work through this assignment ASSETS: Currgnt Assets: Casita 800 Accounts Receivable, Net 49.000 Merchandise Inventory 25 200 - Prepaid Insurance 200 Total Current Assets 74000 - Balance Sheet Summer Corporation December 31, 2020 LIABILITIES Current Liabilities Accounts Payable 1,000 Income Taxes Payable 1,000 Total Current Liabilities, Non-current Assets: Property, Plant & Equipment, Net 130 COO Non-current Liabilities: Bonds Payable "OCCO 10.000 Total Liabilities 88,000 STOCKHOLDERS' EQUITY Common Stock 1.000 Additional Paid-in Capital 22.000 Retained Earnings DOOD Total Stockholders' Equity 000 - Total abilities & Stockholders' Equity Total Assets 20 sampe Statement of Stockholders' Equity Summer Corporation For the Year Ended December 31, 2020 Common Stock Additional Paid-in Capital $99.000 Retained Earnings $ 3.000 Total Stockholders' Equity 100.000 $1,000 December 31, 2019 Stock Issued Net Income Dividends December 31, 2020 25,00 S11200) 200 35.000 (1200 + 1000 799.000 $16.000 I wrote rex ble lines follow Income Statement Summer Corporation For the Year Ended December 31, 2020 Net Sales Revenues 459.000 Cost of Goods Sold 200.000 Gross Profit 203,000 Operating Expenses: Salaries & Wages Expense qy000- Warranty Expense 87.000 Depreciation Expense 10000 Utilities Expense 8.000 Advertising Expense 7.000 Payroll Tax Expense 6,500 Insurance Expense 3,300 Rent Expense 1,800 Repairs & Maintenance Expense DOO Bank Service Expense 500 Total Operating Expenses and Income from Operations 45.000 Other Expenses: Interest Expense robe COD Income Before Taxes 36,000 Income Tax Expense 10.800 Net Income 35200 dol Summer Corporation Ratio Analysis 2019 Results 2020 2312 Profitability Ratios: Return on Equity (Percentage) 2019 calculation 25,200/109,000 26,600 | 26.21% 26.10%0.50 23.12% Return on Assets (Percentage) 28,200/ Gross Profit Percentage (Percentage) Net Profit Margin (Percentage) Earnings per Share Formula 2020 Calculation Nct income Perdoc 001 STOC Folder court net income Average total Gross profit 203.000 NET SOLCS 453,000 C [ net Sales net income weighted AVCTORS nunc oe con SOS Custod Net Sales Average total assets Net Sales Average wet pps NT creat soves Average Hicons COGS Average inventory Turnover (Efficiency) Ratios: Total Asset Turnover Ratio Fixed Asset Turnover Ratio Receivable Turnover Ratio Inventory Turnover Ratio Liquidity Ratios: Working Capital 5 Current Assets. Current Labs 56,000 32.000 74,000 - 18.000 $ 51,000 - 19,000 Current Ratio current asser Fixed Asset Turnover Ratio Receivable Turnover Ratio Net Sales Average wet POEG Ny Credit Saves Average Accounts 120 COGS Average inventory Inventory Turnover Ratio Liquidity Ratios: Working Capital Current Assets - Current Liabs. 74,000 -18,000 $ 56,000 $ 32,000 51,000 - 19,000 Current Ratio current asser current liabilitie concos qui. F Current est te Curt Listed Quick Ratio Solvency Ratios Times Interest Earned Ratio Debt-to-Equity Ratio Market Ratios: Price/Earnings Ratio CONTACTOS cxpense to expect Interest expense Total Loialities Stockindider's equity market price por Shot earnings per shard dividends per share market price per Shoxe Dividend Yield Ratio (Percentage)