Part One Instructions The ancial information for the past 2015 2013 rood in pracht application such as Microtel and the information from the previous arrowse the o ne 1. Prepare a statement of Cash Flows for the current year using the interact method 2. Linhartranta anais, prepare a Comparativ ce Sheet Using wertical aralysts, prepare an income Statement 4. Using the textbook, calculate the ratios set out below Working Capital bath years bCurrent Ratio both years Quick ratio both years Accounts Receivable Tumover 2019 Number of Days Sales in Receivables 2019 (Company policy states 30 days in receivables) f inventory Turnover 2019 # Number of Days Sales in Inventory 2019 Company policy states 50 days to turn over inventory h. Ratio of Liabilities to Stockholders' Equity 2018 and 2019 1. Return on Total Assets 2019 Return on Stockholders' Equity 2019 k Earnings Per Share 2018 and 2019 Totul cura 500.00D Propsity Plant, and quia Equipment Le t te apreciation Louimurit Total Property, plow, w ent Totalt 19000 3.000 1300 Y eder 11, 2017 2018 10 $ 50 000 00 Additional was purchased for cash and a fontem note payable Part One Instructions The financial information for the past two years (2018 and 2019) is provided. Using a spreadsheet application, such as Microsoft Excel and the information from the previous years provide the following: 1. Prepare a statement of Cash Flows for the current year using the indirect method. 2. Using horizontal analysis, prepare a Comparative Balance Sheet. 3. Using vertical analysis, prepare an Income Statement. 4. Using the textbook, calculate the ratios set out below: a. Working Capital both years b. Current Ratio both years c. Quick ratio both years d. Accounts Receivable Turnover 2019 e. Number of Days Sales in Receivables 2019 (Company policy states 30 days in receivables) f. Inventory Turnover 2019 R. Number of Days Sales in Inventory 2019 Company policy states 50 days to turn over inventory) h. Ratio of Liabilities to Stockholders' Equity 2018 and 2019 1. Return on Total Assets 2019 J. Return on Stockholders' Equity 2019 k. Earnings Per Share 2018 and 2019 The financial statements provided in this practice set can also be downloaded from Blackboard. An example of a Statement of Cash Flow has been provided at the end of the Practice Set. Download the Excel files (Income Statement and Balance Sheet) from Blackboard and add a column and calculate the ratios for the vertical and horizontal analysis. 5. Acting as an accounting advisor to the firm, prepare a memo in which you analyze the financial statements you prepared in step two and prepare an analysis of the company's financial position. Identify two strengths and two weaknesses in the company. Make two 2 Page ANTIC Comparative Balan SOCIETY Robust Robots, Inc. Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 S S Assets Current Assets: Cash Accounts Receivable net Merchandise Inventory Supplies Prepaid Insurance Total Current Assets $ $ $ 5 $ 50. 65,000 150.000 135,000 9.700 30,000 3 89.700 135,000 80.000 100 000 70.000 500 $ 65 10.000 20 S S 260.500 Property. Plant, and Equipment: Equipment Less: Accumulated Depreciation Equipment Total Property, Plant and Equipment Total Assets $ $ $ S 500,000 180,000) 420,000 809,700 $ $ $ $ 240,000 190,000) 150,000 410,500 4 IP 2019 OCTETY 2011 Liabilities and Stockholders' Equity Current Llabilities Accounts Payable Unearned Revenue Salaries Payable Federal Income Taxes Payable Totol Current Liabilities 250.000 3 $ 40,000 40,000 5 $ SOOD 30,000 1900 130,000 -10.05 10,00 S 240.000 S 10, Long Term Liabilities Nate Payable Total Long Term Liabilities Total Liabilities $ S $ 130 000 130,000 370,000 S $ 130,000 $ 100.000 Stockholders' Equity: Common Stock, $10 Par Paid in Capital in Excess of Par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity S $ S $ 170,000 43.700 226,000 489,700 809,700 S $ $ $ $ 180,500 280500 410.500 omparative In ACCOUNTING SOCIETY Robust Robots, Inc. Comparative Statement of income For the Years Ended December 31, 2019 and 2018 2019 2018 $ $ $ 700,000 524 300 175.700 $ 600,000 $ 180,000 $ Sales Cost of Goods Sold Gross Margin Operating Expenses: Salaries and Wages Expense Rent Expense Depreciation Expense Total Operating Expenses Income from Operations Loss on Sale of Equipment Interest Expense Increase (Decrease) in Operating Income Income before Taxes Federal Income Taxes Net Income 47,290 20.256 20,000 87,546 88,154 (5,213) (3,656) (8,869) $ S $ $ $ wwwluluwa 100.000 20.000 10.000 120,000 50,000 $ S (5,000) (5,000) $ 79,285 (23,786) 55,500 $ S $ $ 45,000 13 500) 31,500 ACCOUNTING SOCIETY Comparative Statement of Retained Earnings Robust Robots, Inc. Comparative Statement of Retained Earnings For the Years Ended December 31, 2019 and 2018 2019 Retained Earnings, Beginning $ of Year 180,500 $ 176.000 Net Income 5 55 500 5 31,500 Less: Dividends $ 10,000 $ 27,000 Retained Earnings, End of Year $ 226,000 $ 10 500 1. Equipment with a cost of $90,000 on which depreciation has been recorded, was sold for cash. Additional equipment was purchased for cash and a long-term note payable. 2. Stock was issued for cash. 3. The dividends were paid in cash