Galin Co.
Balance Sheets As of December 31				Income Statements for the
(000 omitted)				Years Ended 12/31
	Year 2	Year 1		(000's omitted)	Year 2	% of Sales	Year 1	% of Sales		% Change
`
Cash	$3,000	$2,000		Net Sales	180,000		150,000
Marketable Securities	5,000	4,000
Accounts Receivable (net)	47,000	44,000		Cost of Goods Sold	147,000		120,000
Inventories	50,000	60,000
Prepaid Expenses	2,000	1,000		Gross Margin	33,000		30,000
Total Current Assets
Property, Plant, & Equipment	100,000	105,000		Other Expenses
Investments	1,000	1,000		Selling And Administrative	20,000		18,000
Long-Term Receivables	3,000	2,000		Other Expenses	2,000		2,000
Goodwill and Patents	2,000	4,000		Total Other Expenses	22,000		20,000
Other Assets	2,000	3,000
Total Assets				Income Before Taxes	11,000		10,000
				Income Taxes	5,000		4,000
Liabilities and Equity
Liabilities				Net Income	6,000		6,000
Notes Payable	$3,000	$5,000
Accounts Payable	12,000	16,000
Accrued Expenses	9,000	11,000		Ratios for 20X8:
Income Taxes Payable	1,000	1,000
Payments Due within One Year	3,000	2,000		Current ratio
Total Current Liabilities				Quick Ratio
Long-Term Debt	50,000	60,000		A/R turnover
Deferred Income Taxes	30,000	27,000		Average # of days to collect A/R
Other Liabilities	5,000	4,000		Inventory Turnover
Total Liabilities				Earnings per share of common stock
Stockholders' Equity				Price-Eearnings ratio of common stock
Preferred Stock*	20,000	20,000		Debt to assets ratio
Common Stock*	5,000	5,000		Equity to assets ratio
Additional Paid-in Capital - Common	35,000	35,000		Return on investment
Retained Earnings	42,000	40,000		Return on equity
Total Stockholders' Equity
Total Liabilities & Stockholders Equity
* 5% Cumulative Pfd. Stk, par value $100 per share;				Market Price Per Share
$100 liquidating value; authorized 250,000 shares				on December 31, Year 2	$16.00
# issued & outstanding (000's omitted)	200
Dividend Percent	5%
Par Value	$100
**$1 par value common stk; 10 million shares authorized;
issued and outstanding (000's omitted)	5000

Instructions:

On the template provided, first use excel to calculate each subtotal or total (blank underlined and highlighted space) on the Balance Sheet and the Income Statement. (Remember that you need to begin a formula with an =.

For the income statement, perform a vertical analysis USING EXCEL FORMULAS for 20X8 and 20X7 in the cells labeled % of Sales. Round to two decimal places. (To copy a formula, you may want to use absolute cell references. To lock or make a cell reference an absolute cell reference, you insert a $ before and after the letter of the cell. For example, $G$4 tells Excel to always go to cell G4.)

For the income statement, use Excel Formulas to perform a horizontal analysis of the income statement for 20X8 and 20X7 in the column labeled % change. Again, round to two decimal places.

Use Excel Formulas to calculate the ratios indicated. Remember to create as efficient a spreadsheet as possible, using cell references instead of dollar amounts whenever possible. (For ratios that should be expressed as percentages, format the cell as a percentage.)