) Home Insert Page Layout Formulas Data Review View Arial Copy Format Painter 11 Alignment Font Clipboarod F13 10/2 Solution Chapter Problem: 15 Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars) 2016 2015 $21,000 $20,000 3,759 3,240 52 50048,000 84 000 56,000 S161 259 $127,240 218 400200,000 Assets Cash and cash equivalents Short-term investments 1 Accounts Receivable 2 Inventories 3 Total current assets 4 Net fixed assets 5 Total assets 7 Liabilities and equity 18 Accounts payable 19 Accruals 20 Notes payable 21 Total current liabilities 22 Long-term debt 23 Total liabilities 24 Common stock $33 600 $32 000 12 600 12,000 19 9296,480 S66, 129 $50,480 67 682 58 320 $133,791$108 800 183 793178 440 Retained Earnings 92 07E 40 000 Wrap Text Arial ri Copy A- 1, 111 | Merge & Center . Paste Format Painter Alignmen Clipboard ont F13 $245,868 $218,440 $379659 $327.240 26 Total common equity 27 Total liabilities and equity 28 29 Joshua & White Technologies December 31 Income Statements 30 (Thousands of Dollars) 31 32 Sales 2016 2015 $420,000 $400,000 33 COGS except excluding depr. and am 300,000 298,000 19,66018,000 27600 22000 $72,740 $62,000 5740 4460 $67,000 $57,540 26800 23.016 $40.200 $34.524 34 Depreciation and Amortization 35 Other operating expenses 36 EBIT 37 Interest Expense 8 EBT 39 Taxes (40%) 40 Net Income 41 42 Common dividends 43 Addition to retained earnings $18,125 $17 262 S22,075 $17,262 5 Other Data 46 Year-end Stock Price 47 # of shares (Thousands) 2016 2015 $90.00$96.00 4,000 Lease payment (Thousands of Dollars $20,000 $20,000 Sinking fund payment (Thousands of $5,000 $5,000 4,052 (4-4 : Build a Model rady Home Insert Page Layout Formulas DataReviewView Wrap Text Arial Copy AMerge& Center Format PainterB3 AE Alignment Font Clipboard F13 2016 2015 Industry Avg Ratio Analysis Liquidity Ratios Current Ratio Quick Ratic 2.58 1.53 Asset Management Ratios Inventory Tunover (Total COGS/Inventories) Days Sales Outstanding Fixed Assets Turnover 7.69 47.45 2.04 1.23 Total Assets Turnover Debt Management Ratios Debt Ratio (Total debt-to-assets) 20.0% 32.1% 15.33 4.18 Liabilities-to-assets ratio Times-interest-earned ratio EBITDA coverage ratio 5 Profitability Ratios 6 Profit Margin 7 Basic Earning Power 8 Return on Assets 9 Return on Equity o Market Value Ratios 1 Earnings per share 2 Price-to-earnings ratio 73 Cash flow per share 8.86% 19.48% 10.93% 16.10% NA 10.65 NA NBuild a Model Address Home Insert Page Layout Formulas Data Review View Arial Copy Format Painter l BAu-Ee-l Font Alignment Clipboard F13 Price-to-eanings ratio Cash flow per share Price-to-cash flow ratio Book Value per share Market-to-book ratio 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. c. How has Joshu & White's profitability changed during the last year? d. Perform an extended Du Pont analysis for Joshua & White for 2008 and 2009. ROE PM TA Turnover x Equity Multiplier 3 2016 2015 HBuild a Model Address Home Insert Page Layout Formulas Data Review View Cut a Copy Wrap Text General S % . Merge & Center. lile-la-A-11 EE Paste yFormat Painter Num Font Alignment Clipboard F13 100e. Perform a common size analysis. What has happened to the composition 101 (that is, percentage in each category) of assets and liabilities? 102 03 Common Size Balance Sheets 104 Assets 2016 2015 105 Cash and cash equivalents 106 Short-term investments 107 Accounts Receivable Inventories Total current assets Net foxed assets 111 Total assets 113 Liabilities and equity 2016 2015 114 Accounts payable 5 Accruals Notes payable 117 Total current liabilities 118 Long-term debt Total liablities Common stock Retained Earmings otal common equity Total Lablities and equity Home Insert Page Layout Formulas Data Review View Wrap Text Arial a Copy A- | f Merge & Center . Format Painter BI Clipboard aste Alignment Font F13 2016 2015 5 Common Size Income Statements 27 COGS except excluding depr. and amort 28 Depreciation and Amortization 29 Other operating expenses 130) EBIT 131 Interest Expense 132 EBT 133 Taxes (40%) 134 Net Income 135 137 39 40 f. Perform a percent change analysis. What does this tell you about the change in profita 141 and asset utilization? 143 Percent Change Balance Sheets 144 Assets Base 2015 2016 Cash and cash equivalents 146 Short-term investments 7 Accounts Receivable nventories 149 Total current assets Build a Model Address