In this part of your assignment, you will compose an analytical study reporting your results from Part 1. The CEO of your company is forming a task force to review the financials and present a review for acquisition of ABC Company. Based on ABCs previous 3 years of financials, determine if this would be a good acquisition. You must form the task force to complete the task.

The CEO would like most of the departments to participate in the process. Using each departments area of expertise, what information would each of the following departments contribute to the final decision? Provide a minimum one-paragraph response for each department.

• Human Resources
• Legal Department

1 2 3 4 Total Sales 5 Cost of Goods Sold 6 Gross Profit 7 Selling Generall and Adminstrative 8 Operating Profit 9 Total Other Income/Expenses Net 10 Earnings before Interest and Taxes 11 Interest 11 Interest Expense 12 12 Income Before Tax 12 Income Tax Exne 13 Income Tax Expense 14 Net Income from Continuing Ops Period Ending 15 Discontinued Operations 16 Net Income (Net Profit) 19 20 20 17 14,000,000 Shares outstanding 18 Market Share price per share A 21 ABC Company Balance Sheet 22 Period Ending 23 Assets MGA 24 Current Assets 25 Cash and Cash Equivalents 26 Net Receivables 27 Inventory 28 Other Current Assets 29 Total Current Assets 30 Property Plant and Equipment 31 Goodwill 32 Other Assets 34 33 Total Assets 39 34 35 39 36 29 37 3.8 39 40 41 B D ABC Company Income Statement C 365,086,000 120,565,000 31-Dec-15 31-Dec-14 $485,651,000 $476,294,000 93,418,000 27 147.000 27,147,000 112.000 113,000 27.034.000 27,034,000 2.451.000 2,461,000 24,573,000 7,985,000 16,588,000 285,000 $16,303,000 $10.00 2015 E $9,135,000 6,778,000 45,141,000 2,224,000 63,278.000 116,655,000 18,102,000 5,671,000 203,706,000 F 358,069,000 118,225,000 91,353,000 25 872 000 26,872,000 110.000 119,000 26,753,000 2. 335.000 2,335,000 24,418,000 8 105.000 8,105,000 16,313,000 144,000 $16,169,000 $9.00 2014 $7,281,000 6,677,000 44,858,000 2,369,000 61.185,000 117,907,000 19,510,000 6,149,000 204,751,000 G H 31-Dec-13 $475,210,000 350,400,000 124,810,000 90,343,000 34 467 000 34,467,000 115.000 115,000 24 252 000 34,352,000 2,200,000 32,152,000 9,800,000 22,352,000 182,000 $22,170,000 $8.50 2013 | J Current Liabilities Accounts Payable $6,789,000 Other current Liabilities 6,525,000 Short-term Debt 43,989,000 Total Current Liabilities 2,199,000 59,502,000 120,300,000 17,900,000 4,500,000 202,202,000 K Long-term Debt Deferred Long-term Liability charges Monority Interest Total Liabilities Miscellaneous Stock Options Warrants Common Stock Retained Earnings Captial Surplus Other Stockholders Equity Total Stockholders Equity Total Liabilities & Stockholders Equity # of Shares Outstanding Market share price per share L 2015 58,583,000 6,689,000 65,272,000 43,692,000 8,805,000 4,543,000 122,312,000 0 323,000 85,777,000 2,462,000 -7,168,000 81,394,000 203,706,000 14,000,000 $10.00 M N 2014 57,174,000 89,000 12,082,000 69,345,000 44,559,000 8,017,000 5,084,000 127,005,000 0 323,000 ,000 76,566,000 2,362,000 -1,505,000 77,746,000 204,751,000 14,000,000 $9.00 0 P 2013 56,210,000 55,000 14,050,000 70,315,000 45.324.000 13,553,000 6,875,000 136,067,000 0 323,000 65,750,000 2.262.000 -2,200,000 66,135,000 202,202,000 14,000,000 $8.50 A 1 Ratio Calculations 2 3 Liquidity Ratios 4 Current Ratio 5 Quick Ratio 6 7 Activity Ratios 8 Inventory Turnover 9 Accounts Recievables Turnover 10 Total Asset Turnover 11 Average Collection Period 12 13 Financing Ratios 14 Debt Ratio 15 Debt-to-Equity Ratio 16 Times Interest Earned Ratio 17 18 Market Ratios 19 Earnings per Share (EPS) 20 Price Earnings (PE) 21 22 Profitability Ratios 23 Return on Equity (ROE) 24 Return on Assets (ROA) 25 Net Profit Margin 26 Operating Profit Margin B C D E 2015 0.97 0.28 8.09 71.65 2.38 5.09 0.6 1.5 10.98 1.16 8.62 20 8 3.4 5.6 2014 0.88 0.24 7.98 71.33 2.33 5.12 0.62 1.63 11.46 1.15 7.83 20.8 7.9 3.4 5.6 F G 2013 H 0.85 current asset/current liability 0.22 (current asset-inventory)/current liability 0.67 2.06 15.61 Formula Used (Write out formulas) 7.97 Cost of goods sold/ Inventory 72.83 Annual Credit Sales/ Accounts Receivable 2.35 Sales/ Total Assets 5.01 Acccounts Receivable/ Annual Credit Sales/ 365 days 33.5 11 Total Liabilities/ Total Assets Total Liabilities/ Total shareholders equity Net operating Income/ Interest Expense 1.58 Total Earnings/ Outstanding shares 5.38 Market Price per Share/ Earnings per share net income/ shareholders' equity ner income/average assets net income/sales 4.7 7.3 operating profit/sales 1 2 3 4 Total Sales 5 Cost of Goods Sold 6 Gross Profit 7 Selling Generall and Adminstrative 8 Operating Profit 9 Total Other Income/Expenses Net 10 Earnings before Interest and Taxes 11 Interest 11 Interest Expense 12 12 Income Before Tax 12 Income Tax Exne 13 Income Tax Expense 14 Net Income from Continuing Ops Period Ending 15 Discontinued Operations 16 Net Income (Net Profit) 19 20 20 17 14,000,000 Shares outstanding 18 Market Share price per share A 21 ABC Company Balance Sheet 22 Period Ending 23 Assets MGA 24 Current Assets 25 Cash and Cash Equivalents 26 Net Receivables 27 Inventory 28 Other Current Assets 29 Total Current Assets 30 Property Plant and Equipment 31 Goodwill 32 Other Assets 34 33 Total Assets 39 34 35 39 36 29 37 3.8 39 40 41 B D ABC Company Income Statement C 365,086,000 120,565,000 31-Dec-15 31-Dec-14 $485,651,000 $476,294,000 93,418,000 27 147.000 27,147,000 112.000 113,000 27.034.000 27,034,000 2.451.000 2,461,000 24,573,000 7,985,000 16,588,000 285,000 $16,303,000 $10.00 2015 E $9,135,000 6,778,000 45,141,000 2,224,000 63,278.000 116,655,000 18,102,000 5,671,000 203,706,000 F 358,069,000 118,225,000 91,353,000 25 872 000 26,872,000 110.000 119,000 26,753,000 2. 335.000 2,335,000 24,418,000 8 105.000 8,105,000 16,313,000 144,000 $16,169,000 $9.00 2014 $7,281,000 6,677,000 44,858,000 2,369,000 61.185,000 117,907,000 19,510,000 6,149,000 204,751,000 G H 31-Dec-13 $475,210,000 350,400,000 124,810,000 90,343,000 34 467 000 34,467,000 115.000 115,000 24 252 000 34,352,000 2,200,000 32,152,000 9,800,000 22,352,000 182,000 $22,170,000 $8.50 2013 | J Current Liabilities Accounts Payable $6,789,000 Other current Liabilities 6,525,000 Short-term Debt 43,989,000 Total Current Liabilities 2,199,000 59,502,000 120,300,000 17,900,000 4,500,000 202,202,000 K Long-term Debt Deferred Long-term Liability charges Monority Interest Total Liabilities Miscellaneous Stock Options Warrants Common Stock Retained Earnings Captial Surplus Other Stockholders Equity Total Stockholders Equity Total Liabilities & Stockholders Equity # of Shares Outstanding Market share price per share L 2015 58,583,000 6,689,000 65,272,000 43,692,000 8,805,000 4,543,000 122,312,000 0 323,000 85,777,000 2,462,000 -7,168,000 81,394,000 203,706,000 14,000,000 $10.00 M N 2014 57,174,000 89,000 12,082,000 69,345,000 44,559,000 8,017,000 5,084,000 127,005,000 0 323,000 ,000 76,566,000 2,362,000 -1,505,000 77,746,000 204,751,000 14,000,000 $9.00 0 P 2013 56,210,000 55,000 14,050,000 70,315,000 45.324.000 13,553,000 6,875,000 136,067,000 0 323,000 65,750,000 2.262.000 -2,200,000 66,135,000 202,202,000 14,000,000 $8.50 A 1 Ratio Calculations 2 3 Liquidity Ratios 4 Current Ratio 5 Quick Ratio 6 7 Activity Ratios 8 Inventory Turnover 9 Accounts Recievables Turnover 10 Total Asset Turnover 11 Average Collection Period 12 13 Financing Ratios 14 Debt Ratio 15 Debt-to-Equity Ratio 16 Times Interest Earned Ratio 17 18 Market Ratios 19 Earnings per Share (EPS) 20 Price Earnings (PE) 21 22 Profitability Ratios 23 Return on Equity (ROE) 24 Return on Assets (ROA) 25 Net Profit Margin 26 Operating Profit Margin B C D E 2015 0.97 0.28 8.09 71.65 2.38 5.09 0.6 1.5 10.98 1.16 8.62 20 8 3.4 5.6 2014 0.88 0.24 7.98 71.33 2.33 5.12 0.62 1.63 11.46 1.15 7.83 20.8 7.9 3.4 5.6 F G 2013 H 0.85 current asset/current liability 0.22 (current asset-inventory)/current liability 0.67 2.06 15.61 Formula Used (Write out formulas) 7.97 Cost of goods sold/ Inventory 72.83 Annual Credit Sales/ Accounts Receivable 2.35 Sales/ Total Assets 5.01 Acccounts Receivable/ Annual Credit Sales/ 365 days 33.5 11 Total Liabilities/ Total Assets Total Liabilities/ Total shareholders equity Net operating Income/ Interest Expense 1.58 Total Earnings/ Outstanding shares 5.38 Market Price per Share/ Earnings per share net income/ shareholders' equity ner income/average assets net income/sales 4.7 7.3 operating profit/sales