ORANGE UNIVERSE Comparative Balance Sheet June 30, 2022 and 2023 Assets Current Assets: Cash Short-term Investments Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets Property, Plant, and Equipment Total Assets 2023 2022 $ 138,000 $ 124,000 675,000 645,000 230,000 212,000 63,000 62,000 189,000 184,000 1,295,000 1,227,000 875,000 832,000 $ 2,170,000 $ 2,059,000 Liabilities Current Liabilities: Accounts Payable $ 265,000 $ 250,750 Accrued Liabilities 641,000 725,523 Total Current Liabilities Long-term Liabilities 906,000 976,273 Bonds Payable 250,000 150,000 Mortgage Payable 150,000 175,000 Total Long-term Liabilities 400,000 325,000 Total Liabilities 1,306,000 1,301,273 Stockholders' Equity Common Stock, $1 par, 225,000 shares issued and outstanding 225,000 225,000 Paid-In Capital in Excess of Par 58,000 58,000 Retained Earnings 581,000 474,727 Total Stockholders' Equity 864,000 757,727 Total Liabilities and Stockholders' Equity $ 2,170,000 $ 2,059,000 ORANGE UNIVERSE Income Statement ORANGE UNIVERSE Income Statement Year Ended June 30, 2023 Net Sales $ 2,800,000 Cost of Goods Sold 1,551,600 Gross Profit Operating Expenses 1,248,400 450,540 797,860 Operating Income Other Income and (Expenses) Interest Expense Income Before Income Taxes Income Tax Expense Net Income Additional financial information: a. 75% of net sales are on account. b. Market price of stock is $36 per share on June 30, 2023. c. Annual dividend for 2023 was $1.50 per share. d. All short-term investments are cash equivalents. (15,000) 782,860 153,529 $ 629,331 Requirements 1. Perform a horizontal analysis on the balance sheet for 2022 and 2023 2. 3. Perform a vertical analysis on the balance sheet and income statement for 2023. Compute the following ratios: a. Working Capital b. Current Ratio C. d. e. Acid-Test (Quick) Ratio Cash Ratio Accounts Receivable Turnover f. Days' Sales in Receivables Inventory Turnover g. h. Days' Sales in Inventory i. Gross Profit Percentage j. Debt Ratio k. Debt to Equity Ratio Additional financial information: Requirements a. 75% of net sales are on account. b. Market price of stock is $36 per share on June 30, 2023. c. Annual dividend for 2023 was $1.50 per share. d. All short-term investments are cash equivalents. 1. Perform a horizontal analysis on the balance sheet for 2022 and 2023 2. 3. Perform a vertical analysis on the balance sheet and income statement for 2023. Compute the following ratios: a. Working Capital b. Current Ratio Acid-Test (Quick) Ratio Cash Ratio Accounts Receivable Turnover Days' Sales in Receivables C. d. e. f. g. Inventory Turnover h. Days' Sales in Inventory i. Gross Profit Percentage j. Debt Ratio k. Debt to Equity Ratio Times-Interest-Earned Ratio |I. m. Profit Margin Ratio n. Rate of Return on Total Assets 0. Asset Turnover Ratio p. q. Rate of Return on Common Stockholders' Equity Earnings per share (EPS) Price/Earnings Ratio r. S. Dividend Yield t. Dividend Payout Requirement 1 Perform a horizontal analysis on the balance sheets for 2022 and 2023. Complete the grey boxes below. Current Assets: Cash Short-term Investments Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets Property, Plant, and Equipment Total Assets ORANGE UNIVERSE Comparative Balance Sheet Assets June 30, 2022 and 2023 Increase (Decrease) 2023 2022 Amount Percentage $ 138,000 $ 124,000 675,000 645,000 230,000 212,000 63,000 62,000 189,000 184,000 1,295,000 1,227,000 875,000 832,000 $ 2,170,000 $ 2,059,000 Liabilities Current Liabilities: Accounts Payable Accrued Liabilities $ 265,000 $ 250,750 641,000 725,523 Total Current Liabilities Long-term Liabilities Bonds Payable 906,000 976,273 250,000 150,000 Mortgage Payable 150,000 175,000 Total Long-term Liabilities 400,000 325,000 Total Liabilities 1,306,000 1,301,273 Stockholders' Equity Common Stock, $1 par, 225,000 shares issued and outstanding 225,000 225,000 Paid-In Capital in Excess of Par 58,000 58,000 Retained Earnings 581,000 474,727 Total Stockholders' Equity 864,000 757,727 Total Liabilities and Stockholders' Equity $ 2,170,000 $ 2,059,000 Requirement Perform a vertical analysis on the balance sheet and income statement for 2023. Complete the grey boxes below. ORANGE UNIVERSE Comparative Balance Sheet June 30, 2023 Current Assets: Cash Short-term Investments Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets Property, Plant, and Equipment Total Assets Assets $ 138,000 675,000 230,000 63,000 189,000 1,295,000 875,000 $ 2,170,000 Liabilities Current Liabilities: Accounts Payable Accrued Liabilities $ 265,000 641,000 Total Current Liabilities Long-term Liabilities Bonds Payable 906,000 250,000 Mortgage Payable Total Long-term Liabilities Total Liabilities 150,000 400,000 1,306,000 Stockholders' Equity Common Stock, $1 par, 225,000 shares issued and outstanding Paid-In Capital in Excess of Par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 225,000 58,000 581,000 864,000 $ 2,170,000 ORANGE UNIVERSE Income Statement Year Ended June 30, 2023 Net Sales Cost of Goods Sold Gross Profit $ 2,800,000 1,551,600 1,248,400 Operating Expenses 450,540 Operating Income 797,860 Other Income and (Expenses) Interest Expense (15,000) Income Before Income Taxes 782,860 Income Tax Expense 153,529 Net Income 629,331 Requirement 3 Compute the following ratios in the grey cells: Working Capital Current Ratio Acid-Test (Quick) Ratio Cash Ratio Accounts Receivable Turnover Days' Sales in Receivables Inventory Turnover Days' Sales in Inventory Gross Profit Percentage Debt Ratio Debt to Equity Ratio Times-Interest-Earned Ratio Profit Margin Ratio Rate of Return on Total Assets Asset Turnover Ratio Rate of Return on Common Stockholders' Equity Earnings per share (EPS) Price/Earnings Ratio Dividend Yield Dividend Payout 2023 2022