I need help with the statement of cash flows and the 5 analysis questions.

AMAZING COMPANY Adjusted Trial Balance 12/31/19 2019 Account Tide $ $ Cash Accounts Receivable Prepaid Insurance Inventory Office Equipment Machinery & Tools Accumulated Depreciation Accounts Payable Salarles Payable Sales Tax Payable Note Payable-Long Term Common Stock, $10 par Retained Earnings Dividends Sales Revenue Cost of Goods Sold Rent Expense Salaries Expense Insurance Expense Legal Fees Depreciation Expense Interest Expense Income Tax Expense Adjusted Trial Balance Debit Credit 120,000 55,000 5,000 46,000 63,000 59,000 $ 21,000 12,200 2,600 2,000 31,000 240,000 28,600 10,000 240,000 132,600 20,000 36,000 11,800 9,200 5,000 1,800 3,000 577,400 $ 577,400 2018 Post-Cosing Trial Balance Deblt Credit 125,600 35,000 6,000 15,600 47,000 21,000 16,000 16,800 2,700 4,000 22,100 160,000 28,600 $ $ 250,200 250,200 36 37 Transaction Data for 2019 (Note, these transactions were included in the trial balance numbers above. 38 Cash paid for purchase of office equipment $ 6,000 Cash paid for purchase of tools 10,000 40 Acquisition of Machinery with Notes Payable-long-term 38,000 Payment on Long Term Debt ? 42 Cash payment of dividends 10,000 Cash receipt from issuance of 10,000 shares of common stock 80,000 44 -45 46 Requirements: (See sheet tabs at bottom. Use each sheet for the following requirements.) 47 Use Excel Sidlis in completing these requirements. You must use formulas and functions, cell references, and professional formatting. 18 1. Using examples from your textbook, or online research, prepare the Panama Pajama Company multi-step income statement for the year ended December 31, 2019. Include the EPS at the 19 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.) 50 2. Prepare the Panama Pajama Company balance sheet for December 31, 2019. Include a vertical analysis column at the right 51 and perform a vertical analysis of the balance sheet. (Use the percentage format with 1 decimal place.) 52 3. Prepare the Panama Pajama Company statement of cash flows for the year ended December 31, 2019. Use the indirect method. Your textbook has examples of this. 53 4. Complete the analysis of the financial statements as directed on the Analysis sheet. Use percentage format where appropriate with 2 decimal places. 54 5. Complete the analyis of the investment options between this company and EBUY (ratios given). Also use the chart from the attached article, and any other source to analyze the impact of using 55 56 57 58 59 60 51 H. L 1 Using the information provided in the instructions and the financial statements you have created in the previous requirements, perform the following analysis (5 Requirements): 2 Requirement i Compute Current Working Debt-to- 3 these ratios: Ratio Capital Cash Ratio Debt Ratio Equity Ratio 4 Round ratios to two 5 decimal places or format as percentages or Accounts currency as appropriate. Inventory Days Sales in Gross Profit Recelvable Days Sales in 6 Turnover Inventory Percentage Turnover Recelvables 7 8 2018 Total Assets = Rate of Rate of Return Return on on Total Asset Turnover Stockholders' Earnings Per Assets Ratio Equity Share 20 2018 SHE = Price/ Earnings Ratio Dividend Payout Dividend Yield Dividend per share *Current Stock Price is L2 $10.00 per share 3 4 -5 Requirement 2. Based on -6 the ratios computed above, -7 analyze the company's -8 ability to pay its debts (both -9 current and long term). 20 Refer to at least 3 specific 21 ratios in your analysis. 2 Requirement 2. Based on the ratios computed above, analyze the company's ability to pay its debts (both current and long term. 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. A You have just received a large annual bonus at work, and have decided to invest it in stocks for your retirement. You have been analyzing different stocks and have narrowed your choice to two possibilities. You can either invest in Amazing Company, or in EBUY. EBUY's ratios are given below. Select 3 ratios you might use to determine which stock to invest in and make a choice. Defend your selection with quality reasoning. The second part of your analysis is to read the article attached to this assignment. On pages 117-120, there is a chart that summarizes some of the differences between GAAP and IFRS. Explain the general similarities and differences, and discuss how interest expense would be presented on the Statement of Cash Flows. Include in your discussion any differences between GAAP and IFRS. Would that impact your investment decision above? Your answer will be graded on analysis, logic, and writing skills. 1. Which three ratios would you choose to analyze which company would be a better INVESTMENT for you? Think about which ratios help investors. 2. Based on your selection ofratios above, which company has better ratios for investors? Which company would you invest in? Why? 3. Read the article attached on the assignment in CANVAS. Focus on pages 117-120, and explain the general similarities AND differences between GAAP and IFRS in preparing the Statement of Cash Flows. EBUY Ratios: Current Working Ratio Capital 5.00 $ 300,000 Debt-to- Equity Ratio 0.40 Debt Ratio Cash Ratio 4.00 0.35 Days Accounts Sales In Receivable Receivabl Turnover Inventory Days Sales in Gross Profit Turnover Inventory Percentage 7.25 50.34 48% 7.50 48.67 Rate of Return on Total Assets Asset Turnover Ratio Rate of Return on Stockholders' Earnings Per Equity Share 15.40 Price! Earnings Ratio 14.50 Dividend Yield Dividend Payout AMAZING COMPANY Adjusted Trial Balance 12/31/19 2019 Account Tide $ $ Cash Accounts Receivable Prepaid Insurance Inventory Office Equipment Machinery & Tools Accumulated Depreciation Accounts Payable Salarles Payable Sales Tax Payable Note Payable-Long Term Common Stock, $10 par Retained Earnings Dividends Sales Revenue Cost of Goods Sold Rent Expense Salaries Expense Insurance Expense Legal Fees Depreciation Expense Interest Expense Income Tax Expense Adjusted Trial Balance Debit Credit 120,000 55,000 5,000 46,000 63,000 59,000 $ 21,000 12,200 2,600 2,000 31,000 240,000 28,600 10,000 240,000 132,600 20,000 36,000 11,800 9,200 5,000 1,800 3,000 577,400 $ 577,400 2018 Post-Cosing Trial Balance Deblt Credit 125,600 35,000 6,000 15,600 47,000 21,000 16,000 16,800 2,700 4,000 22,100 160,000 28,600 $ $ 250,200 250,200 36 37 Transaction Data for 2019 (Note, these transactions were included in the trial balance numbers above. 38 Cash paid for purchase of office equipment $ 6,000 Cash paid for purchase of tools 10,000 40 Acquisition of Machinery with Notes Payable-long-term 38,000 Payment on Long Term Debt ? 42 Cash payment of dividends 10,000 Cash receipt from issuance of 10,000 shares of common stock 80,000 44 -45 46 Requirements: (See sheet tabs at bottom. Use each sheet for the following requirements.) 47 Use Excel Sidlis in completing these requirements. You must use formulas and functions, cell references, and professional formatting. 18 1. Using examples from your textbook, or online research, prepare the Panama Pajama Company multi-step income statement for the year ended December 31, 2019. Include the EPS at the 19 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.) 50 2. Prepare the Panama Pajama Company balance sheet for December 31, 2019. Include a vertical analysis column at the right 51 and perform a vertical analysis of the balance sheet. (Use the percentage format with 1 decimal place.) 52 3. Prepare the Panama Pajama Company statement of cash flows for the year ended December 31, 2019. Use the indirect method. Your textbook has examples of this. 53 4. Complete the analysis of the financial statements as directed on the Analysis sheet. Use percentage format where appropriate with 2 decimal places. 54 5. Complete the analyis of the investment options between this company and EBUY (ratios given). Also use the chart from the attached article, and any other source to analyze the impact of using 55 56 57 58 59 60 51 H. L 1 Using the information provided in the instructions and the financial statements you have created in the previous requirements, perform the following analysis (5 Requirements): 2 Requirement i Compute Current Working Debt-to- 3 these ratios: Ratio Capital Cash Ratio Debt Ratio Equity Ratio 4 Round ratios to two 5 decimal places or format as percentages or Accounts currency as appropriate. Inventory Days Sales in Gross Profit Recelvable Days Sales in 6 Turnover Inventory Percentage Turnover Recelvables 7 8 2018 Total Assets = Rate of Rate of Return Return on on Total Asset Turnover Stockholders' Earnings Per Assets Ratio Equity Share 20 2018 SHE = Price/ Earnings Ratio Dividend Payout Dividend Yield Dividend per share *Current Stock Price is L2 $10.00 per share 3 4 -5 Requirement 2. Based on -6 the ratios computed above, -7 analyze the company's -8 ability to pay its debts (both -9 current and long term). 20 Refer to at least 3 specific 21 ratios in your analysis. 2 Requirement 2. Based on the ratios computed above, analyze the company's ability to pay its debts (both current and long term. 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. A You have just received a large annual bonus at work, and have decided to invest it in stocks for your retirement. You have been analyzing different stocks and have narrowed your choice to two possibilities. You can either invest in Amazing Company, or in EBUY. EBUY's ratios are given below. Select 3 ratios you might use to determine which stock to invest in and make a choice. Defend your selection with quality reasoning. The second part of your analysis is to read the article attached to this assignment. On pages 117-120, there is a chart that summarizes some of the differences between GAAP and IFRS. Explain the general similarities and differences, and discuss how interest expense would be presented on the Statement of Cash Flows. Include in your discussion any differences between GAAP and IFRS. Would that impact your investment decision above? Your answer will be graded on analysis, logic, and writing skills. 1. Which three ratios would you choose to analyze which company would be a better INVESTMENT for you? Think about which ratios help investors. 2. Based on your selection ofratios above, which company has better ratios for investors? Which company would you invest in? Why? 3. Read the article attached on the assignment in CANVAS. Focus on pages 117-120, and explain the general similarities AND differences between GAAP and IFRS in preparing the Statement of Cash Flows. EBUY Ratios: Current Working Ratio Capital 5.00 $ 300,000 Debt-to- Equity Ratio 0.40 Debt Ratio Cash Ratio 4.00 0.35 Days Accounts Sales In Receivable Receivabl Turnover Inventory Days Sales in Gross Profit Turnover Inventory Percentage 7.25 50.34 48% 7.50 48.67 Rate of Return on Total Assets Asset Turnover Ratio Rate of Return on Stockholders' Earnings Per Equity Share 15.40 Price! Earnings Ratio 14.50 Dividend Yield Dividend Payout