Net sales Variable Costs Contribution Margin Fixed Costs Operating income (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense Earnings after taxes (EAT) Manutech Ltd Income Statement Year Ended December 31 2019 $ 1,470,000 882,000 $ 588,000 177,000 $ 411,000 56,200 $ 354,800 106.440 $ 248,360 2018 $ 1.200.000 720,000 $ 480,000 114,000 $ 366,000 53,600 $ 312,400 93,720 $ 218,680 2018 Manutech Ltd Statement of Financial Position Year Ended December 31 2019 Assets Current Assets Cash 8,360 Accounts Receivable 150,000 Merchandise Inventory 112,000 Total Current Assets $ 270,360 Property, Plant and Equipment 1,555,000 Accumulated Depreciation (455,000) Property, Plant and Equiment (net) $ 1,100,000 Intangible Assets 120,000 Total Assets $ 1.490,360 $ 79,500 105,000 90,000 $ 274,500 1,255,000 (290,000) $ 965,000 120.000 $ 1,359,500 $ 72,500 20,000 Liabilities & Shareholder's Equity Current Liabilities Accounts Payable Accrued Liabilities Bank Loan Total Current Liabilities Mortage Payable Total Liaibilities Shareholder's Equity $ 65,000 15,000 85,000 $ 165,000 650,000 $ 815,000 $ 92,500 670,000 $ 762,500 $ 72,500 20,000 Liabilities & Shareholder's Equity Current Liabilities Accounts Payable Accrued Liabilities Bank Loan Total Current Liabilities Mortage Payable Total Liaibilities Shareholder's Equity Common Shares (10,000 issued) Retained Earnings Total Shareholder's Equity Total Liab & Shareholder's Equity 65,000 15,000 85,000 $ 165,000 650,000 $ 815,000 $ 92,500 670,000 $ 762,500 100,000 575,360 $ 675,360 $ 1,490,360 100,000 497,000 $ 597,000 $ 1,359,500 Manutech Ltd had a good year in 2019. Sales were up significantly and are expected continue to grow in 2020. The company has hired you as their new financial analyst and they want you to finish creating the year-end reporting package for the owner Specifically, you need to complete the table of ratios your predecessor started and comment on how the company is doing compared to industry averages. You also need to create the Statement of Cash Flows for 2019. Finally, they're a little concerned about the impact their high rate of growth is having on the financial stability of the company. They ask you to compare company results to industry results using the three components of DuPont analysis. Q1. Ratio Analysis (15 marks) Complete the following table of ratios for the 2019 results of Manutech Ltd. To complete the table, you will need the following information: . All sales are on credit . The income statement is formatted using the Contribution Margin approach. For those calculations that need it, the cost of goods sold is $794,000 . The company has traditionally ignored Intangible Assets in the Capital Asset Turnover calculation (Use only PP&E for that calculation.) Enter all numbers to three (3) decimal places (this will ensure proper marking by Connect) Be sure to indicate the correct label and how the company is doing against the industry measure for ALL ratios, not just the ones that you calculate Calculation for Choose the Industry Better Ratio Name Manutech Ltd correct label Measure or worse? Profit margin 16.895 (Click to select) 15.100 (Click to select) Return on assets (Click to select) 12.100 (Click to select) Return on equity (Click to select) 37.500 (Click to select) Receivables turnover (Click to select) 8.600 (Click to select) Average collection period 37.245 (Click to select) 42.400 (Click to select) Inventory turnover (Click to select) 9.100 {Click to select) Accounts payable 12 215 (Click to select) turnover 8.500 (Click to select) Accounts payable period (Click to select) 42.900 (Click to select) 3.400 Click in salart Enter all numbers to three (3) decimal places (this will ensure proper marking by Connect). Be sure to indicate the correct label and how the company is doing against the industry measure for All ratios, not just the ones that you calculate Calculation for Manutech Ltd 16.895 Industry Measure 15.100 12.100 37.500 8.600 42.400 9.100 Better or worse? (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) 37.245 Choose the correct label (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) (Click to select) Click to select) Click to select) Click to select) (Click to select) (Click to select) (Click to select) (Click to select Ratio Name Profit margin Return on assets Return on equity Receivables turnover Average collection period Inventory turnover Accounts payable turnover Accounts payable period Capital asset turnover Total asset turnover Current ratio Quick ratio Debt to Total Assets Times interest earned 12.215 0.986 1639 8.500 (Click to select) 42.900 Click to select) 2.400 Click to select) 0 800 Click to select) 2000 (Click to selec) 1500 (Click to select) 0.410 Click to select) 4.521 (Click to select) 0.547