Has J&W$\text{'}$s liquidity position improved or worsened? Explain.

$20212020$ Industry Average

Current ratio fill in the blank $2$

fill in the blank $3$

$2\mathrm{.}68$

Quick ratio fill in the blank $4$

fill in the blank $5$

$1\mathrm{.}60$

The firm's current ratio has

$,$ and the quick ratio has

$,$ indicating that J&W$\text{'}$s liquidity position has

$.$

Has J&W$\text{'}$s ability to manage its assets improved or worsened? Explain. Assume that there are $365$ days in a year.

$20212020$ Industry Average

Inventory turnover fill in the blank $9$

fill in the blank $10$

$7\mathrm{.}47$

Days sales outstanding $($days$)$ fill in the blank $11$

fill in the blank $12$

$50\mathrm{.}01$

Fixed assets turnover fill in the blank $13$

fill in the blank $14$

$1\mathrm{.}84$

Total assets turnover fill in the blank $15$

fill in the blank $16$

$1\mathrm{.}15$

The firm's inventory turnover has

$,$ the DSO has

$,$ the fixed assets turnover has

$,$ and the total assets turnover has

$,$ indicating that J&W$\text{'}$s ability to manage its assets has

$.$

How has J&W$\text{'}$s profitability changed during the last year?

$20212020$ Industry Average

Profit margin fill in the blank $22$

$\%$ fill in the blank $23$

$\%10\mathrm{.}77\%$

Basic earning power fill in the blank $24$

$\%$ fill in the blank $25$

$\%17\mathrm{.}67\%$

Return on assets fill in the blank $26$

$\%$ fill in the blank $27$

$\%12\mathrm{.}25\%$

Return on equity fill in the blank $28$

$\%$ fill in the blank $29$

$\%17\mathrm{.}33\%$

The firm's profit margin has

$,$ the basic earning power has

$,$ the return on assets has

$,$ and the return on equity has

$,$ indicating that J&W$\text{'}$s profitability has

$.$

Perform an extended DuPont analysis for J&W for $2020$ and $2021.$

Profit margin TA turnover Equity multiplier ROE

$2021$ fill in the blank $35$

$\%\backslash$times fill in the blank $36$

$\backslash$times fill in the blank $37$

$=$ fill in the blank $38$

$\%$

$2020$ fill in the blank $39$

$\%\backslash$times fill in the blank $40$

$\backslash$times fill in the blank $41$

$=$ fill in the blank $42$

$\%$

What do these results tell you?

The ROE has

because the profit margin has

$,$ and the equity multiplier has

$,$ despite the fact that the total asset turnover ratio has

$.$

Perform a common size analysis.

Joshua & White Technology: December $31$ Common Size Balance Sheets

$20212020$

Assets

Cash fill in the blank $47$

$\%$ fill in the blank $48$

$\%$

Short$-$term investments fill in the blank $49$

$\%$ fill in the blank $50$

$\%$

Accounts receivable fill in the blank $51$

$\%$ fill in the blank $52$

$\%$

Inventories fill in the blank $53$

$\%$ fill in the blank $54$

$\%$

Total current assets fill in the blank $55$

$\%$ fill in the blank $56$

$\%$

Net fixed assets fill in the blank $57$

$\%$ fill in the blank $58$

$\%$

Total assets fill in the blank $59$

$\%$ fill in the blank $60$

$\%$

Liabilities & Equity

Accounts payable fill in the blank $61$

$\%$ fill in the blank $62$

$\%$

Accruals fill in the blank $63$

$\%$ fill in the blank $64$

$\%$

Notes payable fill in the blank $65$

$\%$ fill in the blank $66$

$\%$

Total current liabilities fill in the blank $67$

$\%$ fill in the blank $68$

$\%$

Long$-$term debt fill in the blank $69$

$\%$ fill in the blank $70$

$\%$

Total liabilities fill in the blank $71$

$\%$ fill in the blank $72$

$\%$

Common stock fill in the blank $73$

$\%$ fill in the blank $74$

$\%$

Retained earnings fill in the blank $75$

$\%$ fill in the blank $76$

$\%$

Total common equity fill in the blank $77$

$\%$ fill in the blank $78$

$\%$

Total liabilities & equity fill in the blank $79$

$\%$ fill in the blank $80$

$\%$

Joshua & White Technology: Common Size Income Statements for Year

Ending on December $31$

$20212020$

Sales fill in the blank $81$

$\%$ fill in the blank $82$

$\%$

COGS excluding depreciation and amortization fill in the blank $83$

$\%$ fill in the blank $84$

$\%$

Depreciation and amortization fill in the blank $85$

$\%$ fill in the blank $86$

$\%$

Other operating expenses fill in the blank $87$

$\%$ fill in the blank $88$

$\%$

EBIT fill in the blank $89$

$\%$ fill in the blank $90$

$\%$

Interest expense fill in the blank $91$

$\%$ fill in the blank $92$

$\%$

EBT fill in the blank $93$

$\%$ fill in the blank $94$

$\%$

Taxes $(25\%)$ fill in the blank $95$

$\%$ fill in the blank $96$

$\%$

Net income fill in the blank $97$

$\%$ fill in the blank $98$

$\%$

What has happened to the composition $($that is$,$ percentage in each category$)$ of assets and liabilities?

Inventories now make up a

proportion of current assets and accounts payable make up a

proportion of current liabilities.

Perform a percentage change analysis.

Joshua & White Technology: December $31$ Percent Change

Balance Sheet

Percent

Change in $2021$

Assets

Cash fill in the blank $101$

$\%$

Short$-$term investments fill in the blank $102$

$\%$

Accounts receivable fill in the blank $103$

$\%$

Inventories fill in the blank $104$

$\%$

Total current assets fill in the blank $105$

$\%$

Net fixed assets fill in the blank $106$

$\%$

Total assets fill in the blank $107$

$\%$

Liabilities & Equity

Accounts payable fill in the blank $108$

$\%$

Accruals fill in the blank $109$

$\%$

Notes payable fill in the blank $110$

$\%$

Total current liabilities fill in the blank $111$

$\%$

Long$-$term debt fi