Hello

I am having a hard time getting started with the Common Size Analysis can someone please assist me?

thanks,

Aretha

Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) Assets 2016 2015 $21,000 $20,000 3,759 3,240 Accounts Receivable 52,500 48,000 Inventories 84,000 56,000 Total current assets Net fixed assets Total assets $161,259 218,400 $379,659 $127,240 200,000 $327,240 Liabilities and equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained Earnings Total common equity Total liabilities and equity $33,600 12,600 19,929 $66,129 67,662 $133,791 183,793 62,075 $245,868 $379,659 $32,000 12,000 6,480 $50,480 58,320 $108,800 178,440 40,000 $218,440 $327,240 Joshua & White Technologies December 31 Income Statements (Thousands of Dollars) 2016 Sales $420,000 COGS except excluding depr. and amort. 300,000 Depreciation and Amortization 19,660 Other operating expenses 27,600 EBIT $72,740 Interest Expense 5,740 EBT $67,000 Taxes (40%) 26,800 Net Income $40,200 2015 $400,000 298,000 18,000 22,000 $62,000 4,460 $57,540 23,016 $34,524 Cash and cash equivalents Short-term investments Common dividends Addition to retained earnings Other Data Year-end Stock Price $18,125 $22,075 $17,262 $17,262 2016 $90.00 2015 $96.00 # of shares (Thousands) Lease payment (Thousands of Dollars) Sinking fund payment (Thousands of Dollars) Ratio Analysis Liquidity Ratios Current Ratio Quick Ratio Asset Management Ratios Inventory Turnover (Total COGS/Inventories) Days Sales Outstanding Fixed Assets Turnover Total Assets Turnover Debt Management Ratios Debt Ratio (Total debt-to-assets) Liabilities-to-assets ratio Times-interest-earned ratio EBITDA coverage ratio Profitability Ratios Profit Margin Basic Earning Power Return on Assets Return on Equity Market Value Ratios Earnings per share Price-to-earnings ratio Cash flow per share Price-to-cash flow ratio Book Value per share Market-to-book ratio 4,052 $20,000 $5,000 4,000 $20,000 $5,000 2016 2015 Industry Avg 1.00 0.78 1.00 0.83 2.58 1.53 3.57 45.63 1.92 1.11 5.32 43.80 2.00 1.22 7.69 47.45 2.04 1.23 19.5% 100.0% 12.67 92400.00 17.8% 100.0% 13.90 80000.00 20.0% 32.1% 15.33 4.18 43.76% 19.16% 48.41% 74.75% 44.61% 18.95% 54.53% 81.69% 8.86% 19.48% 10.93% 16.10% $90.00 1.00 $665.11 $96.00 1.00 $547.13 $60.68 1.48 $54.61 1.76 NA 10.65 NA 7.11 NA 1.72 a. Has Joshua & White's liquidity position improved or worsened? Explain. b. Has Joshua & White's ability to manage its assets improved or worsened? Explain. Joshua & White did not improved their ability to manage their assets the days of sales outstanding increased by 2 days, however they are still below the industry standard. c. How has Joshua & White's profitability changed during the last year? d. Perform an extended Du Pont analysis for Joshua & White for 2008 and 2009. ROE = PM x TA Turnover x Equity Multiplier 2016 2015 e. Perform a common size analysis. What has happened to the composition dustry Avg outstanding increased by 2