Johnson Tools Co. manufactures various types of high quality press tools for manufacturers. Analyze the financial condition of the company 1) Prepare a common size statement 2) Calculate key ratios 3) Compare them with industry figures % % % Johnson Tools Co. Income Statement For 2021 and 2020 (000's) Sales Cost of Goods sold Gross profit Selling and Adm. Expenses Depreciation Operating Income Interest expense Earnings before taxes EBT Income taxes @ 40% Net Income Dividends paid (21.86%) To Retained Earnings EBITDA 2020 50,000 21,000 29,000 10,000 2,500 16,500 450 16,050 6,420 9.630 2,105.118 7,524.882 19,000 2021 52.000 25,000 27,000 17,000 2,900 7.100 425 6,675 2,670 4,005 875.493 3,129.507 10,000 Johnson Tools Co. Balance Sheet For 2021 and 2020 (000's) % % Assets Cash Accounts Rec. (net) Inventory Current assets Plant and Equip less Accumulated Depreciation Plant and equip (net) Land Total Assets 2020 2,500 6,500 4,000 13,000 27,000 12.000 15,000 1,500 29,500 2021 750 7,500 6,000 14,250 32,000 15,000 17,000 1,500 32,750 % Liabilities Accounts Payable Notes Payable Accrued Expenses Current Liab Bonds payable Total liabilities 2020 1.000 3,500 4,000 8,500 5,000 13,500 2021 3,000 3,600 3,500 10.100 3,090 13,190 Stockholders eq Common stock Retained Earnings Total Capital 3,000 13,000 16,000 3,430.49 16,129.507 19,559.997 Total liab and cap 29,500 32,749.997 2020 2021 Industry 50% 15% 8% 10% 20% 1.5 X 1.0x 50% Ratios Gross profit margin Operating profit margin Net profit margin ROA ROE Current ratio Quick ratio Debt/total assets Times interest earned Total asset turnover Inventory turnover Receivables turnover Payable turnover Days inventory Average Collection period Days payables Conversion cycle 25 x 1.6x 8x 8.11 x 8.84 x 45.625 45.01 41.29 49.342