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Posted on Jul 26, 2024

I need help deciding whether i should purchase stocks in the following company or not. Attached are the Balance Sheet and Income Statement for Wholesale

I need help deciding whether i should purchase stocks in the following company or not.

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Attached are the Balance Sheet and Income Statement for Wholesale Distributors for the years 20X7 & 20X8. Additional Information. Capital Stock Issued and Outstanding 10,000 shares. This company is offering an additional 5,000 shares of stock at $25 per share Required: Based on the analysis provided and any other information you deem necessary would you purchase the stock and why. Your answer needs to be at least one page in length .Give examples and refer back to the analysis I am looking for a well thought out and detailed answer Dec 31,07 Dec 31.08 ASSETS Current Assets Checking/Savings Company Checking Account Company Savings Account Petty Cash Account Total Checking/Savings 36.857 66 25.000,00 500.00 62 357 66 15.00% 10.17% 0.20% 25.37% 84 444 87 25,000.00 500.00 109.M4.87 21.90% 6.48% 0.13% 28.51% 47,587.21 0.00 0.00 47,587.21 129.11% 0.00% 0.00% 76.31% Accounts Receivable Accounts Receivable Total Accounts Receivable 40,202.50 40.202.50 0.00% 16.36% 16 36% 56,835.69 56.835.69 0.00% 14.74% 14.74% 0.00 16,633.19 16,633.19 #DIV/0! 41.37% 41.37% 51,060.47 127,651.18 Other Current Assets Inventory Asset Prepaids Prepaid Insurance Prepaid Taxes Total Prepaids 0.00% 20.78% 0.00% 0.00% 0.33% 0.33% 0.00% 33.10% 0.00% 0.00% 0.21% 0.21% 0.00 76,590.71 0.00 0.00 0.00 0.00 #DIV/0! 150.00% #DIV/0! #DIV/0! 0.00% 0.00% 0.00 800.00 800.00 0.00 800.00 800.00 Security Deposits Total Other Current Assets 1.200 00 53,060.47 0.49% 21.59% 1,200.00 129,651.18 0.31% 33.62% 0.00 76,590.71 0.00% 144.35% Total Current Assets 155.620.63 53.33% 296.431.74 76.87% 140,811.11 90.48% Fixed Assets Accumulated Depreciation Automobiles & Trucks Computer & Office Equipment Machinery & Equipment Total Fixed Assets (923.04) 45.63200 19.453.00 25.963.00 90,124.96 0.00% -0.38% 18.57% 7.92% 10.56% 36.67% (1.833.52) 45,632.00 19 453.00 25.963.00 89.214.48 0.00% -0.48% 11.83% 5.04% 6.73% 23.13% 0.00 (910.48) 0.00 0.00 0.00 (910.48) #DIV/0! 98.64% 0.00% 0.00% 0.00% -1.01% TOTAL ASSETS 245.745,59 100.00% 385,646.22 100.00% 139,900.63 56.93% LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable Total Accounts Payable 0.00% 0.00% 0.00% 0.00% 1.62% 1.62% 0.00% 0.00% 0.00% 0.00% 1.55% 1.55% 0.00 0.00 0.00 0.00 1,995.40 1,995.40 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 50.00% 50.00% 3.990 80 3,990.80 5.996 20 5,986.20 0.00% Credit Cards QuickBooks Credit Card Total Credit Cards 1249 12 1,249.12 0.00% 0.51% 0.51% 1,300.00 1,300.00 000 50.88 50.88 #DIVA 4.07% 4.07% 0.34% Other Current Liabilities Line of Credit Payroll Liabilities 104, 618.08 0.00% 42 57% 0.00% 136,00350 0.00% 35.27% 0.00% 0.00 31,385.42 0.00 #DIV/0! 30.00% #DIV/0! 0.00% Payroll Liabilities Payroll Taxes Payable SEC125 Payable Total Payroll Liabilities 1.565 31 100.00 1,66531 0.00% 0.42% 0.03% 0.44% 1,612 27 100.CO 1,71227 0.00 46.96 0.00 46.96 #DIV/0! 3.00% 0.00% 2.82% 0.04% 0.68% Total Other Current Liabilities 106,283,39 43.25% 137.715.77 35.71% 31,432.38 29.57% Total Current Liabilities 111.523.31 45.38% 145.001.97 37.60% 33,478.66 30.02% Total Liabilities 111.523.31 45.38% 145.001.97 37.50% 33,478.66 30.02% Equity 0.00% 0.00% Common Stock Additional Paid in Capital Retained Earnings Net Income Total Equity 10.000.00 33.949 80 0.00 90.272 48 134,222 28 4.07% 13.82% 0.00% 36.73% 54.52% 10.000.00 33.949.80 90.272.48 106.421.96 240.644 24 2.59% 8.80% 23.41% 27.50% 62 40% 0.00 0.00 0.00 90,272.48 16,149.48 106,421.96 #DIV/0! 0.00% 0.00% #DIV/0! 17.89% 79.29% TOTAL LIABILITIES & EQUITY 245,745.59 100.00% 385,646.21 100.00% 139,900.62 56.93% 000 (0.00) 140 0.92 Current Ratio Quick Ratio Inventory Turns Days in Inventory Gross Profit % AR Turnover Days Sales in Rev Debt Ratio Debt to Equity x Interest Earned Rate Return on Sales Rate Return on Assets Asset Turnover Rate Retrun CS EPS PE Ratio Dividend Yield Dividend Payout BV CS 49.53 0.50 18.55 19.67 0.45 0.83 40.31 0.24 0.73 3.04 18.05 9.03 2.04 1.15 2 27 160.78 0.51 8.46 43.17 0.38 0.60 43.57 0 26 0.34 1.30 10.64 10.64 13.42 24.06 Jan - Dec 07 Jan - Dec 08 Ordinary Income/Expense Income Revenue Total Income 372,951.45 372951.45 100.00% 100.00% 410.246.60 410,246.60 100.00% 100.00% 37,295.15 37,295.15 10.00% 10.00% Cost of Goods Sold Direct Labor Wages - Warehouse Total Direct Labor 18 630.00 18,630.00 0.00% 0.00% 5.00% 5.00% 19,188.90 19,188.90 0.00% 0.00% 4.68% 4.68% 0.00 0.00 558.90 558.90 #DIV/0! #DIV/0! 3.00% 3.00% Freight Costs Packaging Materials Purchases (Cast of Goods) Sales Commission (outside reps) Total COGS 1,810.00 1,752.50 161.945.83 3,990.80 188,129 13 0.49% 0.47% 43.42% 1.07% 50.44% 1,918.60 1,875.18 171,662 58 8,204.93 202,850.19 0.47% 0.46% 41.84% 2.00% 49.45% 106.60 122.68 9.716.75 4.214.13 14,721.06 6.00% 7 .00% 6.00% 105.60% 7.82% Gross Profit 184.822.32 49.56% 207.396.41 50.55% 22,574.09 12.21% 2,000.00 710.23 2,600.00 710.23 Expense Advertising Expense Business License & Fees Car Truck Expense Car Lease Gas Insurance-Auto Registration & License Repairs & Maintenance 6,756.00 907.64 1,440.00 546.00 1,700.23 0.00% 0.54% 0.19% 0.00% 1.81% 0.24% 0.39% 0.15% 0.46% 3.04% 6.756.00 1,361.46 1,440.00 546.00 2,500.00 12.603.46 0.00% 0.63% 0.17% 0.00% 1.65% 0.33% 0.35% 0.13% 0.61% 3.07% 0.00 600.00 0.00 0.00 0.00 453.82 0.00 0.00 799.77 1,253.59 #DIV/0! 30.00% 0.00% #DIV/0! 0.00% 50.00% 0.00% 0.00% 47.04% 11.04% Total Can Truck Expense 11,349 87 4,700.00 2,500.00 923.04 1,900.00 5,000.00 2,000.00 910.48 1,900.00 300.00 (500.00) (12.56) 0.00 0.00 Conferences and Seminars Contributions Depreciation Expense Dues and Subscriptions Insurance General Liability Insurance Owner's Health Insurance Professional Liability Insuranc Worker's Compensation Total Insurance 1.26% 0.67% 0.25% 0.51% 0.00% 0.74% 1.15% 1.84% 0.75% 4.47% 2,760.00 4,272.00 6,875.00 2,782.08 16,689.08 0.00 1.22% 0.49% 0.22% 0.46% 0.00% 0.67% 1.06% 1.68% 0.68% 4.08% 2,760.00 4,336.08 6,875.00 2,782 OB 16,753.16 6.38% -20.00% -1.36% 0.00% #DIV/0! 0.00% 1.50% 0.00% 0.00% 0.38% 64.08 0.00 0.00 64.08 Maintenance Janitorial Marketing Expense Meals Office Equipment Postage and Delivery Professional Fees Accounting Fees Legal Fees 2,841.95 4.982 00 1,376 35 1,100.00 1,098 00 0.76% 1.34% 0.37% 0.29% 0.29% 0.00% 0.68% 0.16% 3.000.00 5.500.00 2,000.00 1.500.00 1,300.00 0.73% 1.34% 0.49% 0.37% 0.32% 0.00% 0.73% 0.12% 158.05 518.00 623.65 400.00 202.00 0.00 456.00 (100.00) 5.56% 10.40% 45.31% 36.36% 18.40% #DIV/0! 17.92% - 16.67% 2,544.00 600.00 3.000.00 500.00 Legal Fees Payroll Service Fees Total Professional Fees 600.00 1,529.24 4,673.24 0.16% 0.41% 1.25% 500.00 2,000.00 5,500.00 0.12% 0.49% 1.34% (100.00) 470.76 B26.76 -16.67% 30.78% 17.69% 2,021.00 7,005.00 Promotional Expense Rent Repairs Computer Repairs Total Repairs 0.54% 1.8.8% 0.00% 0.10% 2,000.00 7.005.00 0.49% 1.71% 0.00% 0.12% 0.12% (21.00) 0.00 0.00 110.00 110.00 -1.04% 0.00% #DIV/0! 28.21% 28.21% 390.00 390.00 500.00 500.00 6,199 36 4,003 44 7,000.00 4,500.00 Supplies Telephone Travel & Entertainment Travel Total Travel & Entertainment 1.66% 1.07% 0.00% 0.93% 0.93% 1.71% 1.10% 0.00% 0.98% 0.98% 800.64 496.56 0.00 547.77 547.77 12.91% 12.40% #DIV/0! 15.87% 15.87% 3,452 23 3,452 23 4,000.00 4,000.00 501.59 Utilities Wages Employee Benefits Payroll Tax Expenses Sick Holiday & Vacation Pay Wages - Office Staff Total Wages 2,253.96 3,751.05 0.00 5,832.00 11,837.01 0.13% 0.00% 0.60% 1.01% 0.00% 1.56% 3.17% 2,321,58 3.883 58 0.00 6.006 96 12.192.12 0.00% 0.00% 0.57% 0.94% 0.00% 1.46% 2.97% (501.59) -100.00% 0.00 #DIV/0! 67.62 3.00% 112.53 3.00% 0.00 #DIV/0! 174.96 3.00% 355.11 3.00% Total Expense 92.253.39 24.74% 98.474 45 24.00% 6,221.06 6.74% Net Ordinary Income 92,568.93 24.82% 108.921,96 26.55% 16,353.03 17.67% Other Income/Expense Other Expense Other Expense Interest Expense Total Other Expense 0.00% 0.00% 0.00% 0.62% 0.62% 0.00% 0.00% 0.00% 0.61% 0.61% 0.00 0.00 0.00 203.55 203.55 #DIV/0! #DIV/0! #DIV/0! 8.86% 3.86% 2,296.45 2,296.45 2,500.00 2,500.00 Total Other Expense 2,296.45 0.62% 2,500.00 0.61% 203.55 8.86% Net Other Income -2.296.45 -0.62% -2.500.00 -0.61% 25.94% (203.55) 16,149.48 8.86% 17.89% Net Income 90,272.48 24.20% Attached are the Balance Sheet and Income Statement for Wholesale Distributors for the years 20X7 & 20X8. Additional Information. Capital Stock Issued and Outstanding 10,000 shares. This company is offering an additional 5,000 shares of stock at $25 per share Required: Based on the analysis provided and any other information you deem necessary would you purchase the stock and why. Your answer needs to be at least one page in length .Give examples and refer back to the analysis I am looking for a well thought out and detailed answer Dec 31,07 Dec 31.08 ASSETS Current Assets Checking/Savings Company Checking Account Company Savings Account Petty Cash Account Total Checking/Savings 36.857 66 25.000,00 500.00 62 357 66 15.00% 10.17% 0.20% 25.37% 84 444 87 25,000.00 500.00 109.M4.87 21.90% 6.48% 0.13% 28.51% 47,587.21 0.00 0.00 47,587.21 129.11% 0.00% 0.00% 76.31% Accounts Receivable Accounts Receivable Total Accounts Receivable 40,202.50 40.202.50 0.00% 16.36% 16 36% 56,835.69 56.835.69 0.00% 14.74% 14.74% 0.00 16,633.19 16,633.19 #DIV/0! 41.37% 41.37% 51,060.47 127,651.18 Other Current Assets Inventory Asset Prepaids Prepaid Insurance Prepaid Taxes Total Prepaids 0.00% 20.78% 0.00% 0.00% 0.33% 0.33% 0.00% 33.10% 0.00% 0.00% 0.21% 0.21% 0.00 76,590.71 0.00 0.00 0.00 0.00 #DIV/0! 150.00% #DIV/0! #DIV/0! 0.00% 0.00% 0.00 800.00 800.00 0.00 800.00 800.00 Security Deposits Total Other Current Assets 1.200 00 53,060.47 0.49% 21.59% 1,200.00 129,651.18 0.31% 33.62% 0.00 76,590.71 0.00% 144.35% Total Current Assets 155.620.63 53.33% 296.431.74 76.87% 140,811.11 90.48% Fixed Assets Accumulated Depreciation Automobiles & Trucks Computer & Office Equipment Machinery & Equipment Total Fixed Assets (923.04) 45.63200 19.453.00 25.963.00 90,124.96 0.00% -0.38% 18.57% 7.92% 10.56% 36.67% (1.833.52) 45,632.00 19 453.00 25.963.00 89.214.48 0.00% -0.48% 11.83% 5.04% 6.73% 23.13% 0.00 (910.48) 0.00 0.00 0.00 (910.48) #DIV/0! 98.64% 0.00% 0.00% 0.00% -1.01% TOTAL ASSETS 245.745,59 100.00% 385,646.22 100.00% 139,900.63 56.93% LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable Accounts Payable Total Accounts Payable 0.00% 0.00% 0.00% 0.00% 1.62% 1.62% 0.00% 0.00% 0.00% 0.00% 1.55% 1.55% 0.00 0.00 0.00 0.00 1,995.40 1,995.40 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 50.00% 50.00% 3.990 80 3,990.80 5.996 20 5,986.20 0.00% Credit Cards QuickBooks Credit Card Total Credit Cards 1249 12 1,249.12 0.00% 0.51% 0.51% 1,300.00 1,300.00 000 50.88 50.88 #DIVA 4.07% 4.07% 0.34% Other Current Liabilities Line of Credit Payroll Liabilities 104, 618.08 0.00% 42 57% 0.00% 136,00350 0.00% 35.27% 0.00% 0.00 31,385.42 0.00 #DIV/0! 30.00% #DIV/0! 0.00% Payroll Liabilities Payroll Taxes Payable SEC125 Payable Total Payroll Liabilities 1.565 31 100.00 1,66531 0.00% 0.42% 0.03% 0.44% 1,612 27 100.CO 1,71227 0.00 46.96 0.00 46.96 #DIV/0! 3.00% 0.00% 2.82% 0.04% 0.68% Total Other Current Liabilities 106,283,39 43.25% 137.715.77 35.71% 31,432.38 29.57% Total Current Liabilities 111.523.31 45.38% 145.001.97 37.60% 33,478.66 30.02% Total Liabilities 111.523.31 45.38% 145.001.97 37.50% 33,478.66 30.02% Equity 0.00% 0.00% Common Stock Additional Paid in Capital Retained Earnings Net Income Total Equity 10.000.00 33.949 80 0.00 90.272 48 134,222 28 4.07% 13.82% 0.00% 36.73% 54.52% 10.000.00 33.949.80 90.272.48 106.421.96 240.644 24 2.59% 8.80% 23.41% 27.50% 62 40% 0.00 0.00 0.00 90,272.48 16,149.48 106,421.96 #DIV/0! 0.00% 0.00% #DIV/0! 17.89% 79.29% TOTAL LIABILITIES & EQUITY 245,745.59 100.00% 385,646.21 100.00% 139,900.62 56.93% 000 (0.00) 140 0.92 Current Ratio Quick Ratio Inventory Turns Days in Inventory Gross Profit % AR Turnover Days Sales in Rev Debt Ratio Debt to Equity x Interest Earned Rate Return on Sales Rate Return on Assets Asset Turnover Rate Retrun CS EPS PE Ratio Dividend Yield Dividend Payout BV CS 49.53 0.50 18.55 19.67 0.45 0.83 40.31 0.24 0.73 3.04 18.05 9.03 2.04 1.15 2 27 160.78 0.51 8.46 43.17 0.38 0.60 43.57 0 26 0.34 1.30 10.64 10.64 13.42 24.06 Jan - Dec 07 Jan - Dec 08 Ordinary Income/Expense Income Revenue Total Income 372,951.45 372951.45 100.00% 100.00% 410.246.60 410,246.60 100.00% 100.00% 37,295.15 37,295.15 10.00% 10.00% Cost of Goods Sold Direct Labor Wages - Warehouse Total Direct Labor 18 630.00 18,630.00 0.00% 0.00% 5.00% 5.00% 19,188.90 19,188.90 0.00% 0.00% 4.68% 4.68% 0.00 0.00 558.90 558.90 #DIV/0! #DIV/0! 3.00% 3.00% Freight Costs Packaging Materials Purchases (Cast of Goods) Sales Commission (outside reps) Total COGS 1,810.00 1,752.50 161.945.83 3,990.80 188,129 13 0.49% 0.47% 43.42% 1.07% 50.44% 1,918.60 1,875.18 171,662 58 8,204.93 202,850.19 0.47% 0.46% 41.84% 2.00% 49.45% 106.60 122.68 9.716.75 4.214.13 14,721.06 6.00% 7 .00% 6.00% 105.60% 7.82% Gross Profit 184.822.32 49.56% 207.396.41 50.55% 22,574.09 12.21% 2,000.00 710.23 2,600.00 710.23 Expense Advertising Expense Business License & Fees Car Truck Expense Car Lease Gas Insurance-Auto Registration & License Repairs & Maintenance 6,756.00 907.64 1,440.00 546.00 1,700.23 0.00% 0.54% 0.19% 0.00% 1.81% 0.24% 0.39% 0.15% 0.46% 3.04% 6.756.00 1,361.46 1,440.00 546.00 2,500.00 12.603.46 0.00% 0.63% 0.17% 0.00% 1.65% 0.33% 0.35% 0.13% 0.61% 3.07% 0.00 600.00 0.00 0.00 0.00 453.82 0.00 0.00 799.77 1,253.59 #DIV/0! 30.00% 0.00% #DIV/0! 0.00% 50.00% 0.00% 0.00% 47.04% 11.04% Total Can Truck Expense 11,349 87 4,700.00 2,500.00 923.04 1,900.00 5,000.00 2,000.00 910.48 1,900.00 300.00 (500.00) (12.56) 0.00 0.00 Conferences and Seminars Contributions Depreciation Expense Dues and Subscriptions Insurance General Liability Insurance Owner's Health Insurance Professional Liability Insuranc Worker's Compensation Total Insurance 1.26% 0.67% 0.25% 0.51% 0.00% 0.74% 1.15% 1.84% 0.75% 4.47% 2,760.00 4,272.00 6,875.00 2,782.08 16,689.08 0.00 1.22% 0.49% 0.22% 0.46% 0.00% 0.67% 1.06% 1.68% 0.68% 4.08% 2,760.00 4,336.08 6,875.00 2,782 OB 16,753.16 6.38% -20.00% -1.36% 0.00% #DIV/0! 0.00% 1.50% 0.00% 0.00% 0.38% 64.08 0.00 0.00 64.08 Maintenance Janitorial Marketing Expense Meals Office Equipment Postage and Delivery Professional Fees Accounting Fees Legal Fees 2,841.95 4.982 00 1,376 35 1,100.00 1,098 00 0.76% 1.34% 0.37% 0.29% 0.29% 0.00% 0.68% 0.16% 3.000.00 5.500.00 2,000.00 1.500.00 1,300.00 0.73% 1.34% 0.49% 0.37% 0.32% 0.00% 0.73% 0.12% 158.05 518.00 623.65 400.00 202.00 0.00 456.00 (100.00) 5.56% 10.40% 45.31% 36.36% 18.40% #DIV/0! 17.92% - 16.67% 2,544.00 600.00 3.000.00 500.00 Legal Fees Payroll Service Fees Total Professional Fees 600.00 1,529.24 4,673.24 0.16% 0.41% 1.25% 500.00 2,000.00 5,500.00 0.12% 0.49% 1.34% (100.00) 470.76 B26.76 -16.67% 30.78% 17.69% 2,021.00 7,005.00 Promotional Expense Rent Repairs Computer Repairs Total Repairs 0.54% 1.8.8% 0.00% 0.10% 2,000.00 7.005.00 0.49% 1.71% 0.00% 0.12% 0.12% (21.00) 0.00 0.00 110.00 110.00 -1.04% 0.00% #DIV/0! 28.21% 28.21% 390.00 390.00 500.00 500.00 6,199 36 4,003 44 7,000.00 4,500.00 Supplies Telephone Travel & Entertainment Travel Total Travel & Entertainment 1.66% 1.07% 0.00% 0.93% 0.93% 1.71% 1.10% 0.00% 0.98% 0.98% 800.64 496.56 0.00 547.77 547.77 12.91% 12.40% #DIV/0! 15.87% 15.87% 3,452 23 3,452 23 4,000.00 4,000.00 501.59 Utilities Wages Employee Benefits Payroll Tax Expenses Sick Holiday & Vacation Pay Wages - Office Staff Total Wages 2,253.96 3,751.05 0.00 5,832.00 11,837.01 0.13% 0.00% 0.60% 1.01% 0.00% 1.56% 3.17% 2,321,58 3.883 58 0.00 6.006 96 12.192.12 0.00% 0.00% 0.57% 0.94% 0.00% 1.46% 2.97% (501.59) -100.00% 0.00 #DIV/0! 67.62 3.00% 112.53 3.00% 0.00 #DIV/0! 174.96 3.00% 355.11 3.00% Total Expense 92.253.39 24.74% 98.474 45 24.00% 6,221.06 6.74% Net Ordinary Income 92,568.93 24.82% 108.921,96 26.55% 16,353.03 17.67% Other Income/Expense Other Expense Other Expense Interest Expense Total Other Expense 0.00% 0.00% 0.00% 0.62% 0.62% 0.00% 0.00% 0.00% 0.61% 0.61% 0.00 0.00 0.00 203.55 203.55 #DIV/0! #DIV/0! #DIV/0! 8.86% 3.86% 2,296.45 2,296.45 2,500.00 2,500.00 Total Other Expense 2,296.45 0.62% 2,500.00 0.61% 203.55 8.86% Net Other Income -2.296.45 -0.62% -2.500.00 -0.61% 25.94% (203.55) 16,149.48 8.86% 17.89% Net Income 90,272.48 24.20%