Joshua & White Technology: December $31$ Balance Sheets

$($Thousands of Dollars$)$

$20212020$

Assets

Cash $ $23,100$ $ $22,000$

Short$-$term investments $3,7322,980$

Accounts receivable $57,50051,000$

Inventories $79,00054,000$

Total current assets $ $163,332$ $ $129,980$

Net fixed assets $223,771200,000$

Total assets $ $387,103$ $ $329,980$

Liabilities & Equity

Accounts payable $ $32,025$ $ $30,500$

Accruals $13,12512,500$

Notes payable $19,8036,840$

Total current liabilities $ $64,953$ $ $49,840$

Long$-$term debt $66,18056,280$

Total liabilities $ $131,133$ $ $106,120$

Common stock $174,000174,000$

Retained earnings $81,97049,860$

Total common equity $ $255,970$ $ $223,860$

Total liabilities & equity $ $387,103$ $ $329,980$

Joshua & White Technology: Income Statements for Year

Ending on December $31($Thousands of Dollars$)$

$20212020$

Sales $ $415,800$ $ $396,000$

COGS excluding depreciation and amortization $298,000297,000$

Depreciation and amortization $19,64018,000$

Other operating expenses $25,50019,800$

EBIT $ $72,660$ $ $61,200$

Interest expense $5,7204,300$

EBT $ $66,940$ $ $56,900$

Taxes $(25\%)16,73514,225$

Net income $ $50,205$ $ $42,675$

Common dividends $ $18,095$ $ $17,070$

Additions to retained earnings $ $32,110$ $ $25,605$

Other Data $20212020$

Year$-$end stock price $ $86\mathrm{.}00$ $ $94\mathrm{.}00$

Number of shares $($Thousands$)4,0464,000$

Lease payment $($Thousands of Dollars$)$ $ $22,000$ $ $22,000$

Sinking fund payment $($Thousands of Dollars$)$ $ $4,000$ $ $4,000$d$.$ Perform an extended DuPont analysis for J&W for $2020$ and $2021.$

What do these results tell you?

The ROE has

because the profit margin has

and the equity multiplier has

$,$ despite the fact that the total asset turnover ratio has

e$.$ Perform a common size analysis.

Joshua & White Technology: December $31$ Common Size Balance Sheets

Joshua & White Technology: Common Size Income Statements for Year

Ending on December $31$

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