i need the ratio analysis and writeup

E20 C D E E $ 810,000 460,000 350,000 B 1 Merry Time Lighting 2 Income Statement 3 For the Year Ended December 31, 2021 4. Net Sales Revenue 5 Cost of Goods Sold 6 Gross Profit 7 Operating Expenses: 8 Salaries and Wages Expense 100,000 9 Depreciation Expense 20,000 10 Other Operating Expenses 120,000 11 Total Operating Expenses 12 Operating Income 13 Other Revenues and Expenses: 74 Loss on Asset Disposition (12,000) 15 Interest Expense (12,000) 16 Dividend Revenue 2,000 17 Total Other Revenues and Expenses 18 Income Before Income Taxes 19 Income Tax Expense 20 Net Income 240,000 110,000 (22,000) 88,000 28,000 $ 60,000 21 CD U un AwN A B Merry Time Lighting 2 Comparative Balance Sheet 3 December 31, 2021 4 Assets 5 2021 2020 6 Current Assets: 7 Cash $ 90,000 $ 40,000 8 Accounts Receivable 20,000 34,000 9 Merchandise Inventory 54,000 50,000 10 Total Current Assets 164,000 124,000 11 Noncurrent Assets: Equity Investments 50,000 13 P,P,&E 260,000 200,000 14 Acc. Dep.-P,P,&E *(60,000) (40,000) 15 Total Noncurrent Assets 250,000 160,000 16 Total Assets $ 414,000 $ 284,000 17 Liabilities 18 Current Liabilities: 19 Accounts Payable $ 50,000 $ 34,000 20 Accrued Liabilities 25,000 26,000 21 Total Current Liabilities 75,000 60,000 22 Long-term Debt: 23 Notes Payable 100,000 40,000 12 A B D 19 Accounts Payable $ 50,000 $ 34,000 20 Accrued Liabilities 25,000 26,000 21 Total Current Liabilities 75,000 60,000 22 Long-term Debt: 23 Notes Payable 100,000 40,000 24 Total Liabilities 175,000 100,000 25 Stockholders' Equity 26 Common Stock-No Par 201,000 168,000 27 Retained Earnings 44,000 24,000 28 Treasury Stock (6,000) (8,000) 29 Total Stockholders' Equity 239,000 184,000 Total Liabilities & S.E. $ 414,000 $ 284,000 31 30 22 During the period, Merry Time Lighting disposed of property, plant, equipment. Merry Time simply discarded these assets by placing them in the dumpster and thusly did not receive any cash for their disposition. These assets had a book value of $12,000 at the time of their disposition and Merry Time recorded a loss on their disposal. Merry Time did not make any payments on outstanding notes payable during the period but they signed a new note to obtain financing. Merry Time Lighting sold some of their existing shares in treasury during the period and did so at the exact same price they paid to purchase them. Merry Time Lighting also paid cash dividends to its common shareholders during the period. Use the templates below to determine the amount of cash Merry Time Lighting paid to acquire P, P, & E during the period and the amount of cash the firm transferred to shareholders in the form of dividends. The amounts reported on the statement of cash flows regarding the increase in notes payable, the decrease in treasury stock, the issuance of common stock, and the payment for equity investments should simply be for the difference in these accounts reported on the company's comparative balance sheet. 2 Cash Paid for Plant Asset Acquisition Beginning Balance of P.P&E $ 200,000 5 Less: Book Value of Disposed P.P&E 12,000 Book Value of Beginning Assets still in Service 188,000 1 4 7 260,000 8 Ending Balance of P.P. &E 200,000 2 3 Cash Paid for Plant Asset Acquisition 4 Beginning Balance of P,P,&E $ 5 Less: Book Value of Disposed P,P,&E 6 Book Value of Beginning Assets still in Service 7 un 12,000 188,000 260,000 188,000 72,000 8 Ending Balance of PP, &E 9 Less: Book Value of Beginning P,P, & E Still in Service 10 Cash Paid to Acquire Plant Assets $ 11 Cash Paid for Dividend Payments 13 Beginning Retained Earnings $ 14 Add: Net Income 12 24,000 60,000 15 84,000 16 Less: Cash Dividends Paid 17 Ending Retained Earnings 18 19 40,000 44,000 $ $ 60,000 Merry Time Lighting 2. Statement of Cash Flows 3 Year Ended December 31, 2021 4 Cash Flows from Operating Activities: 5 net income 6 Adjustments: 7 Net Cash Provided by Operating Activities 8. depreciation 9 loss on asset disposition 10 decrease in accounts receivable 11 increase in inventory 12 increase accounts payable 13 decrease in accured liabilities 14 Net Cash Provided by Operating Activities 15 cash flows from investing activities - 16 purchase of equity investment 17 purchase of property, plant and equipment 18 net cash used by investing activities 19 20,000 12,000 14,000 (4,000) 16,000 -1,000 $ 57,000 117,000 (50,000) -72,000 -122,000 CAAAA A B D 19 60,000 33,000 2,000 -40,000 20 issue of notes payable 21 issue of common stock 22 sale of treasury stock 23 payment of dividend 24 net cash prvided by financing activities 25 net increase in cash & its equivalents 26 Cash Balance, 12-31-20 27 Cash Balance, 12-31-21 28 $ 55,000 50,000 40,000 90,000 $ 4 Using the information provided for obtained) on the previous financial statements, compute the following financial ratios for Merry Time Lighting Information which is necessary for these calculations but not found on the firm's financial statements has been 1 provided for you below. 2 Accounts Receivable Balance, End of 2019 $ 36,000 3 Inventory Balance, End of 2019 47,000 Market Price Per Share, End of 2021 10.00 S Weighted Average Shares Outstanding, 2021 30,000 6 Preferred Dividends, 2021 7 Sales Revenue, 2020 790,000 Cost of Goods Sold, 2020 444,000 Cash Ratio Merry Time Labin Memy Time Lashon hichorage Formule Reference Table 10 2021 20.20 022 Cush Ratio - Cash/Total Current Liabilities 11 0.80 Current Ratio - Total Current Assets/Total Current 12 Current Ratio Liabilities Memy Tume Echang Merry Time Lichi Industry Atence AR Tunase Ratio - Sales Revenue / Current A/R 13 2097 - 2020 + Prior A/R/23 9021 Das Salca in Recenables-865 AR Turnover Rabo 2.30 Io.estoy Turner Ratio - COGS (Current 15 Accounts Receivable Turnover Ratio Inventory Pror Inventory/2) Mer Time Lighting Merry Time Licht Industry Avenge Dasa Salci.in locator 865/ Inventory Tamover 2021 2020 2021 Ratio 3 16 Inenme Statement Balance Sheet Formulas Statement of CF Writeup Ratio Analysis Merry Time Lighting Merry Time Lighting 2021 2020 6 7 Industry Average 2021 18.18 18 Days Sales in Receivables Merry Time Lighting Meny Time Lighting 2021 2020 Daya Sales in Insentory - 365/ Inventory Tumover Rabo Debt Ratio - Total Liabilities/Total Assets Debt to Equity Ratio - Total Liabilities/Total Equity Gross Profit Percentage - Gross Profit Salca Revenue Profit Marpin Ratio - Net Income Sales Revenue Earnings Per Share Net Income Preferred Dividenda) /Weighted Average Shares Outstanding Price to Earnings Ratio - Market Price of Common Stock/ Earnings per Share 19 20 21 Industry Average 2021 20.08 Inventory Turnover Ratio Merry Time Lighting Merry Time Lachang 2021 2020 22 23 24 Industry Avery 2021 14.29 Days Sales In Inventory Merry Time Lighting Merry Time Lighting 2021 2020 25 26 27 Industry Average 2021 25.54 Debt Ratio Merry Time Lighting Merry Time Lichting 2021 2020 28 - 29 30 Industry Average 202/ 0.70 Debt to Equity Ratio Merry Time Lighting Merry Time Lichons 2021 9090 Industry Asetage 2021 1.10 31 32 mausty ziverge 2021 1.10 B verry Time Eignung Werry Time Lignung 31 2021 2020 32 33 Gross Profit Percentage Merry Time Lighting Industry Average 34 2021 2021 35 0.35 36 Profit Margin Ratio Merry Time Lighting Industry Average 37 2021 2021 38 0.09 39 Earnings per Share Merry Time Lighting Industry Average 40 2021 2021 41 2.75 42 Price to Earnings Ratio Merry Time Lighting Industry Average 43 2021 2021 44 4.50 45 B In the space below express your thoughts on Merry Time Lighting's current financial position. Discussion should focus on how the company's financial ratios compare to their previous ratios as well as the industry average 1