In one paragraph, please analyze the Statement of Income for 2017 as compared to 2016:

The denominator should only include 2017 data.

[1] [2] Common size Balance Sheet & Income Stat Yr 2016 Yr 2017 Suggestion: calculate the yellow subtotals before going on to answer individual questions (e.g. the current assets, etc.). These are intermediate numbers used in various ratios. 2016 2017 Big Apple Enterprises Yr 2016 Yr 2017 3 ASSETS Cash 4,500 6,000 Accounts Receivable 21,000 21,000 Inventory 7,500 8,000 Current Assets 33,000 35,000 7.26% 33.87% 12.10% 53.23% 8.57% 30.00% 11.43% 50.00% 5 Other Non-current Assets Net Fixed Assets TOTAL ASSETS 10,500 18,500 62,000 9,000 26,000 70,000 16.94% 29.84% 100.00% 12.86% 37.14% 100.00% 3 LIABILITIES Current Liabilities Debt Equity TOTAL LIABILITIES & EQUITY 20,000 22,000 20,000 62,000 11,000 29,000 30,000 70,000 32.26% 35.48% 32.26% 100.00% 15.71% 41.43% 42.86% 100.00% 3 INCOME STATEMENT Revenue Cost of Goods Sold (COGS) Gross Profit 125,000 85,000 40,000 145,000 110,000 35,000 100.00% 68.00% 32.00% 100.00% 75.86% 24.14% SG&A Operating Profit (EBIT) 20,000 20,000 27,000 8,000 16.00% 16.00% 18.62% 5.52% Interest Expense Earnings Before Taxes (EBT) Taxes Net Income After Tax (NIAT) 2,800 17,200 5,160 12,040 3,450 4,550 1,365 3,185 2.24% 13.76% 4.13% 9.63% 2.38% 3.14% 0.94% 2.20% 5 Other Information Tax Rate Shares Outstanding Dividends paid Yr 2016 30% 2,000 3,000 Yr 2017 30% 2,000 3,000 Share Price $8.00 $6.00 2 3 For each of the calculations or ratios below, show work by specifying the formula you used to get its numeric answer (question #3 has been completed as an example):- Note the following: - Write down the formula where it notes specify your formula used and enter your excel formula and answer in the row highlighted in green - All questions in this assignment are related to 2017 data with the exception of question number 17 and 18 (question 17 and 18 is asking for the growth rate, hence, need to use the data from both years 2016 and 2017) Note - growth rate should equal to (P2 - P1) / P1 Yr 2017 [3] What was the company's Gross Profit in 2017? e.g. Gross Profit = Rev - COGS 35,000 - B 9 [4] What was the company's Gross Margin ratio in 2017? Gross Margin = Gross Profit/Total Revenue 0.24 I 2 [5] What was the company's Operating Profit (EBIT) in 2017? EBIT = Gross Profit - SG&A 8,000 [6] What was the company's Pretax Income (EBT) in 2017? EBT = Operating Profit (EBIT) - Interest Expense 4,550 23 3 3 [7] How much Income Tax did they pay in 2017? Income Tax = Earnings Before Taxes * Tax Rate 1,365 I 2 3 [8] What was the company's Net Income After Tax (NIAT) in 2017? NIAT = Earnings Before Taxes - Taxes 3,185 [9] What was the company's Net Operating Profit After Tax (NOPAT) in 2017? NOPAT = EBIT *(1-Tax Rate) 5,600 [10] What was the company's Times Interest Earned (TIE) in 2017? TIE = EBIT / Interest Expense 2.32 [11] What was the company's Profit Margin ratio in 2017? Profit Margin = Net Income After Tax/Revenue 0.02 * [12] What was the company's Return on Assets (ROA) in 2017? ROA = Net Income After Tax / Total Assets 0.046 [13] What was the company's Return on Equity (ROE) in 2017? ROE = Net Income After Tax/Total Equity 0.106 [14] What is the company's Current ratio in 2017? Current Ratio = Current Asstes/Current Liabilities 3.18 [15] What was the company's Quick Ratio in 2017? Quick Ratio = (Current Assets Inventories) / Current Liabilities 2.45 Assume a day- [16] What was the company's Day's Sales Outstanding (DSO) in 2017? count of 365 days per year. DSO = (Receivables/(Revenue/365)) 53 [17] What was the rate of the company's asset growth between 2016 and 2017? Asset Growth = (2017 Assets - 2016 Assets)/2016 Assets = 12.90% [18] What was the rate of the company's sales' growth between 2016 and 2017? Sales Growth = (2017 Revenue - 2016 Revenue)/2016 Revenue 16.00% Yr. 2017 [19] What was the company's Debt-to-Equity ratio in 2017? Debt-to-Equity Ratio = Total Liabilities / Equity 2.33 [20] What was the company's Earnings Per Share (EPS) in 2017? EPS = Net Income /# of Shares Outstanding 1.59 [ 21] What was the company's Price-Earnings (P/E) ratio in 2017? P/E Ratio = Price Per Share / Earnings Per Share 3.768 [22] What was the company's Dividend Payout ratio (DPR) in 2017? DPR = Dividends paid / Net Income After Tax 0.942 [23] What were the Dividends Per Share paid in 2017? Dividend Per Share = Dividends/# of Shares Outstanding 1.50 [24] What was the Dividend Yield in 2017? Dividend Yield = Dividends/(# of shares outstanding * share price) 25.00% [25] In one paragraph, please analyze the Statement of Income for 2017 as compared to 2016: * The denominator should only include 2017 data