How do I do this? Panther Marine Ratio Analysis June 30, 2017, 2016, 2015 Instructions: Calculate each of the below ratios for the current year. FOLLOW the below steps to complete the ratio analysis: 1. Round ALL answers 2 decimal places 2. Must SHOW ratio descriptions (see current ratio for example) 3. MUST use excel formulas and links to IS comparative and BS comparative worksheets within this workbook (see current ratio for example) 4. MUST indicate if current year answer is favorable, unfavorable, or same in realtion to prior year AND industry (see current ratio for example) 5. USE information at bottom of this worksheet to calculate certain ratios 6. If portion of ratio is not available, still use in ratio description and use 0 as part of formula 7. Inventory calculations do NOT include estimated returns inventory 8. USE below ratios and comparative statements to write a memo to Panther Marine management explaining your findings 2017-06-30 2016-06-30 2015-06-30 INDUSTRY Prior Year/Industry: Favorable, Unfavorable, Same Liquidity Current Ratio 2.01 1 2.10 2.10 2.20 Prior Year - Unfavorable Current Assets 1,428,076 1,513,761 1,460,080 Industry - Unfavorble Current Liabilities 709,775 752,362 723,971 Quick Ratio 1.41 1.41 1.62 Accounts Receivable Turnover 7.44 7.63 10.00 Inventory Turnover 2.76 3.04 2.50 Profitability Profit Margin 4.45% -2.32% 3.5% Asset Turnover 1.10 1.12 1.02 Return on Total Assets 4.89% -2.60% 10.50% Return on Common Shareholders' Equity 36.88% -19.58% 18.30% Earnings per Share (EPS) $3.68 $(1.99) $3.05 Price-Earnings (P/E ) Ratio 11.13 (15.54) 12.54 Dividends per Share $5.00 $6.00 $2.00 Solvency Ratios Ratio of Fixed Assets to Long-Term Liabilities 0.83 0.78 0.80 Fixed Assets (net) Long-Term Liabilities 2017-06-30 2016-06-30 2015-06-30 Common Dividends 200,000 250,000 300,000 Weighted Average Common Shares 50,000 50,000 50,000 Market Price per Share 46 41 31 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 Adjusted Adjusted Adjusted Adjusted Adjusted Trial Balance Trial Balance Trial Balance Trial Balance Trial Balance Acct. No. Account Title Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr. 100 Cash 384,504.00 407,574.24 392,194.08 419,109.36 376,813.92 102 Accounts Receivable 555,666.00 589,005.96 566,779.32 605,675.94 544,552.68 103 Allowance for Doubtful Accounts 22,580.00 23,934.80 19,588.80 24,612.20 22,128.40 104 Merchandise Inventory 456,897.00 484,310.82 466,034.94 498,017.73 447,759.06 105 Estimated Returns Inventory 32,500.00 34,450.00 33,150.00 35,425.00 31,850.00 106 Office Supplies 5,689.00 6,030.34 5,802.78 6,201.01 5,575.22 107 Prepaid Insurance 15,400.00 16,324.00 15,708.00 16,786.00 15,092.00 120 Investments - Trading 80,000.00 84,800.00 81,600.00 87,200.00 78,400.00 121 Investments - Available for Sale 35,400.00 37,524.00 36,108.00 38,586.00 34,692.00 122 Investments - Held to Maturity 80,000.00 84,800.00 81,600.00 87,200.00 78,400.00 123 Valuation Allowance 52,000.00 55,120.00 53,040.00 56,680.00 50,960.00 140 Land 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 145 Building 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 146 Accumulated Depreciation - Building 750,000.00 720,000.00 690,000.00 660,000.00 630,000.00 151 Equipment 85,000.00 80,000.00 80,000.00 80,000.00 75,000.00 152 Accumulated Depreciation - Equipment 68,000.00 59,500.00 51,000.00 42,500.00 34,000.00 153 Office Furniture 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 154 Accumulated Depreciation - Office Furniture 12,000.00 10,000.00 8,000.00 6,000.00 4,000.00 201 Accounts Payable 680,980.00 721,838.80 694,599.60 168,900.00 170,000.00 202 Wages Payable - - 203 Interest Payable - - 204 Dividends Payable - - 205 Unearned Rent 10,000.00 10,600.00 10,200.00 10,900.00 9,800.00 206 Customer Refunds Payable 18,795.00 19,922.70 19,170.90 20,486.55 18,419.10 250 Notes Payable 650,000.00 689,000.00 663,000.00 708,500.00 637,000.00 251 Bonds Payable 1,300,000.00 1,378,000.00 1,000,000.00 1,417,000.00 1,274,000.00 252 Premium on Bonds Payable 56,000.00 50,000.00 35,000.00 55,000.00 45,000.00 253 Discount on Bonds Payable 16,000.00 10,000.00 10,000.00 12,000.00 15,000.00 252 Mortgage (Warehouse) Payable 300,000.00 318,000.00 950,000.00 920,000.00 1,000,000.00 300 Common Stock, $2 Par, 100,000 Authorized; 50,000 shares Issued/Outstanding 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 301 Paid In Capital - Excess of Par 350,000.00 371,000.00 357,000.00 381,500.00 343,000.00 330 Retained Earnings 222,158.00 258,022.60 358,176.52 281,556.86 294,694.17 331 Cash Dividends 200,000.00 250,000.00 300,000.00 300,000.00 250,000.00 340 Treasury Stock 50,000.00 60,000.00 20,000.00 20,000.00 10,000.00 341 Unrealized (Gain) Loss Available for Sale Securities - - - - 500 Sales 4,056,800.00 4,137,936.00 4,302,480.00 4,097,368.00 3,935,096.00 600 Cost of Goods Sold 1,285,698.00 1,311,411.96 1,464,267.80 1,298,554.98 1,247,127.06 700 Wage Expense (hourly workers) 756,894.00 772,031.88 832,583.40 764,462.94 734,187.18 701 Salaries Expense (Exempt Staff) 800,000.00 816,000.00 880,000.00 808,000.00 776,000.00 702 Marketing Expense 295,000.00 300,900.00 324,500.00 297,950.00 286,150.00 703 Travel and Entertainment Expense 56,789.00 57,924.78 62,467.90 57,356.89 55,085.33 704 Bad Debt Expense 42,185.00 43,028.70 46,403.50 42,606.85 40,919.45 705 Property Tax Expense 500,000.00 510,000.00 550,000.00 505,000.00 485,000.00 706 Office Maintenance & Repair Expense 2,000.00 2,040.00 2,200.00 2,020.00 1,940.00 707 Accounting Expenses 10,000.00 10,200.00 65,000.00 10,100.00 9,700.00 708 Insurance Expense 12,000.00 12,240.00 13,200.00 12,120.00 11,640.00 709 Utilities Expense 65,450.00 66,759.00 71,995.00 66,104.50 63,486.50 710 Office Supplies Expense 546.00 556.92 600.60 551.46 529.62 711 Telecommunications Expense 5,425.00 5,533.50 5,967.50 5,479.25 5,262.25 712 Depreciation Expense - Building 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 713 Depreciation Expense - Equipment 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 714 Depreciation Expense - Office Furniture 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 800 Rent Income 8,000.00 2,000.00 10,000.00 15,000.00 5,000.00 801 Unrealized Gain - Trading Securities 5,500.00 1,200.00 5,600.00 16,000.00 8,000.00 802 Realized Gain - Investment Securities 85,460.00 56,485.00 8,690.00 28,560.00 15,000.00 900 Interest Expense 25,000.00 26,500.00 27,500.00 27,250.00 24,500.00 901 Unrealized Loss - Trading Securities 2,500.00 2,650.00 2,750.00 2,725.00 2,450.00 902 Realized Loss - Investment Securities 33,230.00 35,223.80 36,553.00 36,220.70 32,565.40 Total 8,696,273.00 8,696,273.00 8,927,439.90 8,927,439.90 9,282,505.82 9,282,505.82 8,953,883.61 8,953,883.61 8,545,137.67 8,545,137.67 Total Expenses and Revenue 3,933,217.00 4,155,760.00 4,013,500.54 4,197,621.00 4,426,488.70 4,326,770.00 3,977,002.57 4,156,928.00 3,817,042.79 3,963,096.00 Net Income (Loss) 222,543.00 184,120.46 (99,718.70) 179,925.43 146,053.21 Panther Marine Comparative Income Statement For the Years end June 30, 2017, 2016, 2015, 2014, 2013 2017-06-30 2016-06-30 2015-06-30 2014-06-30 2013-06-30 Sales Revenue Net Credit Sales 4,056,800.00 4,137,936.00 4,302,480.00 4,097,368.00 3,935,096.00 Cost of Goods Sold 1,285,698.00 1,311,411.96 1,464,267.80 1,298,554.98 1,247,127.06 Gross Profit 2,771,102.00 2,826,524.04 2,838,212.20 2,798,813.02 2,687,968.94 Operating Expenses Wage Expense (hourly workers) 756,894.00 772,031.88 832,583.40 764,462.94 734,187.18 Salaries Expense (Exempt Staff) 800,000.00 816,000.00 880,000.00 808,000.00 776,000.00 Marketing Expense 295,000.00 300,900.00 324,500.00 297,950.00 286,150.00 Travel and Entertainment Expense 56,789.00 57,924.78 62,467.90 57,356.89 55,085.33 Bad Debt Expense 42,185.00 43,028.70 46,403.50 42,606.85 40,919.45 Property Tax Expense 500,000.00 510,000.00 550,000.00 505,000.00 485,000.00 Office Maintenance & Repair Expense 2,000.00 2,040.00 2,200.00 2,020.00 1,940.00 Accounting Expenses 10,000.00 10,200.00 65,000.00 10,100.00 9,700.00 Insurance Expense 12,000.00 12,240.00 13,200.00 12,120.00 11,640.00 Utilities Expense 65,450.00 66,759.00 71,995.00 66,104.50 63,486.50 Office Supplies Expense 546.00 556.92 600.60 551.46 529.62 Telecommunications Expense 5,425.00 5,533.50 5,967.50 5,479.25 5,262.25 Depreciation Expense - Building 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 Depreciation Expense - Equipment 8,500.00 8,500.00 8,500.00 8,500.00 8,500.00 Depreciation Expense - Office Furniture 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 Total Operating Expenses 2,586,789.00 2,637,714.78 2,895,417.90 2,612,251.89 2,510,400.33 Income from Operations 184,313.00 188,809.26 (57,205.70) 186,561.13 177,568.61 Other Revenues and Gains Rent Income 8,000.00 2,000.00 10,000.00 15,000.00 5,000.00 Unrealized Gain - Trading Securities 5,500.00 1,200.00 5,600.00 16,000.00 8,000.00 Realized Gain - Investment Securities 85,460.00 56,485.00 8,690.00 28,560.00 15,000.00 Total Other Revenue and Gains 98,960.00 59,685.00 24,290.00 59,560.00 28,000.00 Other Expenses and Losses Interest Expense 25,000.00 26,500.00 27,500.00 27,250.00 24,500.00 Unrealized Loss - Trading Securities 2,500.00 2,650.00 2,750.00 2,725.00 2,450.00 Realized Loss - Investment Securities 33,230.00 35,223.80 36,553.00 36,220.70 32,565.40 Total Other Expenses and Losses 60,730.00 64,373.80 66,803.00 66,195.70 59,515.40 Net Income (Loss) 222,543.00 184,120.46 (99,718.70) 179,925.43 146,053.21 Common Dividends 200,000 250,000 300,000 300,000 Weighted Average Common Shares 50,000 50,000 50,000 50,000 Market Price per Common Share 46.00 41.00 31.00 42.00 Panther Marine Balance Sheet June 30, 2017, 2016, 2015, 2014, 2013 2017-06-30 2016-06-30 2015-06-30 2014-06-30 2013-06-30 ASSETS Current assets Cash 384,504.00 407,574.24 392,194.08 419,109.36 376,813.92 Accounts Receivable 555,666.00 589,005.96 566,779.32 605,675.94 544,552.68 Allowance for Doubtful Accounts (22,580.00) (23,934.80) (19,588.80) (24,612.20) (22,128.40) Merchandise Inventory 456,897.00 484,310.82 466,034.94 498,017.73 447,759.06 Estimated Returns Inventory 32,500.00 34,450.00 33,150.00 35,425.00 31,850.00 Office Supplies 5,689.00 6,030.34 5,802.78 6,201.01 5,575.22 Prepaid Insurance 15,400.00 16,324.00 15,708.00 16,786.00 15,092.00 Total Current Assets 1,428,076.00 1,513,760.56 1,460,080.32 1,556,602.84 1,399,514.48 Property, plant & equipment Land 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 Building 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 1,200,000.00 Accumulated Depreciation - Building (750,000.00) (720,000.00) (690,000.00) (660,000.00) (630,000.00) Equipment 85,000.00 80,000.00 80,000.00 80,000.00 75,000.00 Accumulated Depreciation - Equipment (68,000.00) (59,500.00) (51,000.00) (42,500.00) (34,000.00) Office Furniture 14,000.00 14,000.00 14,000.00 14,000.00 14,000.00 Accumulated Depreciation - Office Furniture (12,000.00) (10,000.00) (8,000.00) (6,000.00) (4,000.00) Total Property, plant & equipment 1,969,000.00 2,004,500.00 2,045,000.00 2,085,500.00 2,121,000.00 Other Assets Investments - Trading 80,000.00 84,800.00 81,600.00 87,200.00 78,400.00 Investments - Available for Sale 35,400.00 37,524.00 36,108.00 38,586.00 34,692.00 Investments - Held to Maturity 80,000.00 84,800.00 81,600.00 87,200.00 78,400.00 Valuation Allowance 52,000.00 55,120.00 53,040.00 56,680.00 50,960.00 Total Other Assets 247,400.00 262,244.00 252,348.00 269,666.00 242,452.00 Total Assets 3,644,476.00 3,780,504.56 3,757,428.32 3,911,768.84 3,762,966.48 LIABILITIES & STOCKHOLDER'S EQUITY LIABILITIES Current Liabilities Accounts Payable 680,980.00 721,838.80 694,599.60 168,900.00 170,000.00 Unearned Rent 10,000.00 10,600.00 10,200.00 10,900.00 9,800.00 Customer Refunds Payable 18,795.00 19,922.70 19,170.90 20,486.55 18,419.10 Total Current Liabilities 709,775.00 752,361.50 723,970.50 200,286.55 198,219.10 Long-term Liabilities Notes Payable 650,000.00 689,000.00 663,000.00 708,500.00 637,000.00 Bonds Payable 1,300,000.00 1,378,000.00 1,000,000.00 1,417,000.00 1,274,000.00 Premium on Bonds Payable 56,000.00 50,000.00 35,000.00 55,000.00 45,000.00 Discount on Bonds Payable (16,000.00) (10,000.00) (10,000.00) (12,000.00) (15,000.00) Mortgage (Warehouse) Payable 300,000.00 318,000.00 950,000.00 920,000.00 1,000,000.00 Total Long-term Liabilities 2,290,000.00 2,425,000.00 2,638,000.00 3,088,500.00 2,941,000.00 Total Liabilities 2,999,775.00 3,177,361.50 3,361,970.50 3,288,786.55 3,139,219.10 STOCKHOLDER'S EQUITY Common Stock, $2 Par, 100,000 Authorized; 50,000 shares Issued/Outstanding 100,000.00 100,000.00 100,000.00 100,000.00 100,000.00 Paid In Capital - Excess of Par 350,000.00 371,000.00 357,000.00 381,500.00 343,000.00 Treasury Stock (50,000.00) (60,000.00) (20,000.00) (20,000.00) (10,000.00) Cash Dividends (200,000.00) (250,000.00) (300,000.00) (300,000.00) (250,000.00) Ending Retained Earnings 444,701.00 442,143.06 258,457.82 461,482.29 440,747.38 Total Stockholder's Equity 644,701.00 603,143.06 395,457.82 622,982.29 623,747.38 Total Liabilities and Stockholder's Equity 3,644,476.00 3,780,504.56 3,757,428.32 3,911,768.84 3,762,966.48 TOTAL ASSETS 3,644,476.00 3780504.56 3757428.32 3911768.84 3762966.48 TOTAL LIAB & EQUITY 3,644,476.00 3780504.56 3757428.32 3911768.84 3762966.48 VARIANCE 0 0 0 0 0