J. Kruk Inc. J. Kruk Inc. Income Statement Comparative Balance Sheets For years ended December 31, 2017 and 2018 December 31, 2018 and 2017 2018 2017 Change 2018 2017 Current assets: Sales (all on credit) $683,000 $649,000 Cash $95,850 $60,100 $35,750 Cost of goods sold (363,000) (298,000) Accounts receivable (net) 41,000 34,000 7,000 Gross margin 320,000 351,000 Inventory 46,000 44,000 2,000 Prepaid expenses 1,800 4,000 -2,200 Depreciation expense 37,000 52,000 Other current assets 2,550 3,900 -1,350 Other operating 147,000 122,000 Total current assets 187,200 146,000 41,200 expenses Total operating 184,000 174,000 expenses Operating income 136,000 177,000 Long-term Investments 84,000 58,000 26,000 Other income (expenses) Plant assets 310,000 259,000 51,000 (4,800) (78,600) (3,600) LESS! accumulated depreciation 4,800 Total plant assets 6,800 Interest expense Gain on sale of investments Loss on sale of plant assets Total other income (expenses) 231,400 502,600 (52,000) 26,600 207,000 24,400 411,000 91,600 Income before income taxes Income taxes expense Net income (4,000) (4,800) Total assets (15,600) (3,600) Current liabilities: 134,000 173,400 Accounts payable (40,200) (52,020) Accrued liabilities $93,800 $121,380 Income taxes payable Total current liabilities $27,400 7,200 3,200 37,800 $28,000 6,000 12,000 46,000 $-600 1,200 -8,800 -8,200 242,000 279,800 180,000 62,000 226,000 53,800 J. Kruk Inc. Long term liabilities: Statement of Retained Earnings Notes Payable For the year ended December 31, 2018 Total liabilities 2018 2017 Ret. earnings, Jan. 1 $35,000 $0 Stockholders' equity Add: net income 93,800 121,380 Common stock, $5 par value Deduct: Dividends (56,000) (86,380). Additional paid-in capital 120,000 30,000 120,000 30,000 242,000 279,800 180,000 62,000 226,000 53,800 J. Kruk Inc. Long term liabilities: Statement of Retained Earnings Notes Payable For the year ended December 31, 2018 Total liabilities 2018 2017 Ret. earnings, Jan. 1 $35,000 $0 Stockholders' equity Add: net income 93,800 121,380 Common stock, $5 par value Deduct: Dividends (56,000). (86,380) Additional paid-in capital Increase in retained 37,800 35,000 Retained earnings earnings Ret. earnings, Dec. 31 $72,800 $35,000 Total stockholders' equity Total liabilities and stockholders' equity 120,000 30,000 72,800 222,800 $502,600 120,000 0 30,000 0 35,000 37,800 185,000 37,800 $411,000 $91,600 Other information: Shares of common stock outstanding Earnings per share Dividends per share Market price per share, common stock 24,000 $3.91 $2.33 24,000 $5.06 $3.6 $12 $16 Cash Flows from Oper Horiz Analysis Horiz Analysis Vertic Analysis Vertic Analysis Inc St Bal St Inc St Bal Sheet Ratios Requirement Prepare the cash flows from operations section of J. Kruk Inc.'s 2018 statement of cash flows using the indirect method. Enter items to be subtracted as negative values. J. Kruk Inc. Cash Flows from Operating ActivitiesIndirect Method For Year Ended December 31, 2018 Cash flows from operating activities: Adjustments to reconcile net income to net cash provided by operations: Requirement Prepare a vertical analysis on the partial income statements for 2017 and 2018. Enter decreases as negative amounts/percents. J. Kruk Inc. PARTIAL INCOME STATEMENT (HORIZONTAL ANALYSIS) For the years ended December 31, 2017 and 2018 Increase/decrease 2018 2017 Amount Percent $ 649,000 Sales Cost of goods sold Gross margin Expenses 122,000 Depreciation expense Other operating expenses Total operating expenses Operating income Sabawasa Avalon Partial Balance Sheet (Horizontal Analysis) For the years ended December 31, 2018 and 2017 Increase/decrease Amount Percent 2018 2017 Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Other current assets Total current assets Long-term investments Plant assets Less: accumulated depreciation Total plant assets Total assets J. Kruk Inc. Partial Income Statement (Vertical analysis) | For the years ended December 31, 2018 and 2017 1. 2018 1 % I 2017 $ 649,000 % Sales Cost of goods sold Gross margin Expenses Depreciation expense Other operating expenses Total operating expenses Operating income 122,000 Partial Balance Sheet (Vertical analysis) For the years ended December 31, 2018 and 2017 2018 % 2017 % Liabilities Current liabilities: Accounts payable Accrued liabilities Income taxes payable Total current liabilities 242,000 180,000 Notes payable Total liabilities Stockholders' Equity Common stock, $5 par Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Choose Numerator Enter Numerator Value Enter Denominator Value Choose Denominator Ratio Current ratio Acid-test ratio Inventory turnover Days' sales in inventory Accounts receivable turnover Days' sales in receivables Total asset turnover Debt-to-equity ratio Profit margin Return on total assets Return on common stockholders' equity Pricelearnings ratio (P/E) Dividend yield