Help Please this is my last project in Accounting II
The Panama Pajama Company began operations on January 1, 2015, and is now in its third year of operations. The adjusted trial balance as of December 31, 2018 appears below, along with prior year balance sheet data and some additional transaction data for 2018 THE PANAMA PAIAMA COMPANY Adjusted Trial Balanoe 12/31/18 2018 2017 Account Title Adjusted Trial Balance Debit Balance Sheet Info Debit Cash Accounts Receivable S138,000 12,000 S35,600 11,000 Office Equipment Machinery & Tools Accumulated Depreciation-Plant Assets Accounts Payable Note Payable- Short Term Note Payable-Long Term Common Stock, $10 par Retained Earnings 26,000 59,000 20,000 21,000 8,600 12,200 10,000 33,000 9,800 50,000 11,900 11,900 Sales Revenue Cost of Goods Sold Rent Expense Advertising Expense Depreciation Expense 31,700 11,600 800 2,600 $257,400 257,400 Transaction Data for 2018 (Note, these transactions were included in the trial balance numbers above.) Cash paid for purchase of office equipment Cash paid for purchase of tools Acquisition of Machinery with Notes Payable-Long-term Cash payment of dividends Cash receipt from issuance of 10,000 shares of common stock 33,000 100,000 Requirements: (See sheet tabs at bottom. Use each sheet for the following requirements.) Use Excel Skillsin completing these requirements, You must use formulas and functions, cell references, and professional formatting 1. Prepare the Panama Pajama Company multi-step income statement for the year ended December 31, 2018. Include the EPS at the bottom. Also include a vertical analysis column at the right and perform a vertical analysis of the income statement. (Use percentage format with 1 decimal place.) Prepare the Panama Pajama Company balance sheet for December 31, 2018. Include a vertical analysis column at the right and perform a vertical analysis of the balance sheet. (Use the percentage format with 1 decimal place.) Prepare the Panama Pajama Company statement ofcash flows for the year ended December 31, 2018. Use the indirect method. 2. 3. 4. Complete the analysis of the financial statements as directed on the Analysis sheet Using the information provided in the instructions and the financial statements you have created in the previous requirements, perform the following analysis (5 Requirements): Debt-to- Requirement 1. Compute these ratios: Round ratios to two decimal places or format as percentages or currency as appropriate. CurrentWorking Ratio Capia Cash Ratio Debt Ratio Equity Ratio Inventory Days Sales in Gross Profit Receivable Days Sales in Percentage Turnover ge Turnover Receivables 2017 Total Assets- Rate of Return on Total Assets Rate of Return on TurnoverStockholders' Earnings Per Asset Ratio Share 2017 SHE Price/ EarningsDividend Dividend Current Stock Price is $5.00 per share Ratio Yield Payout Dividend per share- Requirement 2. Based on the ratios computed above analyze the company's ability to pay its debts (both current and longterm). Refer to at least 3 specific ratios in your analysis. Requirement 3: Based on the ratios computed above, analyze the company's management of inventory. Refer to at least 2 specific ratios in your analysis. Requirement 4: Based on the ratios computed above, analyze the company's management of receivables. Refer to at least 2 specific ratios in your analysis. Requirement S: Based on the ratios computed above, analyze the company's utilization of assets and evaluate whether this company's stock is likely to be attractive to investors. Refer to at least 3 specific ratios in your analysis. Assume the industry average rate of return on assets is 6% and asset turnover is 1.50
