Please answer the following 11 questions. Definitely needed for my homework tonight huhu. Thank you, so much appreciated whoever answers this. God bless!

A Sample Project Case Setting: It is Spring 2006 and you are looking for full-time employment. Plush Carpet Mill, Inc. (PCM) has offered you a position as manager of its San Antonio, Texas production facility. Before accepting the job, however, you want to evaluate PCM's financial performance to make sure it is a sound company. PCM has provided you a copy of its year-end 2003, 2004, and 2005 balance sheets and income statements (Exhibit 1), and you plan to obtain industry data from the 2004-2005 edition of Annual Statement Studies: Financial Ratio Benchmarks prepared by RMA-The Risk Management Association. Your task now is to assess the financial condition of PCM through both 1) a 2003-05 trend (historical) analysis and 2) a 2005 peer group (industry) analysis using 2005 data for PCM and RMA data for the carpet mill industry. Remember. In doing your analysis you are essentially telling a story about PCM's financial performance over the last few years and relative to other similar- sized fims in the industry. Required: This assignment involves a Microsoft Excel template provided by your instructor (Exhibit 2) with four major components. First, you must enter data from the financial statements of PCM into the Excel spreadsheet (every cell containing an "A"), either by entering the data directly or by entering an appropriate cell- referenced equation, for the three years 2003-05. Second, you must enter cell-referenced equations into the template to construct 1) common-size balance sheets and income statements for each of the three years (every cell containing a "B"), 2) financial ratios for each of the three years (every cell containing a "C"), and 3) accounting cash flow statements for 2004 and 2005 (every cell containing a D). For simplicity, all financial ratios requiring balance sheet data should be calculated using year-end figures rather than an average of beginning-of-year and end- of-year data. Next, you must enter 2003/04 industry data (common-size financial statement data and financial ratios) for "ManufacturingCarpet and Rug Mills (NAICS 314110, SIC 2273)" from the 2004-2005 edition of RMA's Annual Statement Studies: Financial Ratio Benchmarks (every cell containing an "E"). Limit your industry analysis to RMA data collected from firms with sales of "25MM & Over" to compare with 2005 data for PCM. Finally, you must assign qualitative assessments of Good, OK Good, OK, OK/Poor, or Poor to the trends in each of the firm's financial ratios as well as to the degree to which the fim's financial ratios are superior to the matching industry ratios (every cell containing an "F"). In addition to the Excel requirements outlined above, you must answer the following set of analytical questions on the several areas of financial performance- liquidity, asset management financing of assets, profitability, and cash flowand then pull all of your analysis together to give an overall evaluation of the fimm. In answering these questions, do not forget to look at the firm's common-size balance sheet and income statement items, including trends over 2003-05 and the relationship of 2005 common-size ratios to industry data. Oftentimes, you will see pattems in the common-size ratios that reinforce and further explain patters in the financial ratios, and vice versa. Finally, you must consider the market's assessment of the firm and, based on both yours and the market's assessment, decide whether you would accept employment with the firm. Liquidity 1. Look at the current ratio and the quick (acid-test) ratio of PCM. What trends do you notice over 2003-05, and what does this suggest about PCM's liquidity? How does PCM's liquidity in 2005 compare with the industry average? 2. Now study the accounts receivables turnover and inventory tumover of PCM What do these patterns suggest about the firm's conversion of accounts receivable and inventories to cash? 3. Considering your answers to the two questions above, what is your overall assessment of PCM's liquidity position? What two major factors account for your assessment? Asset Management 4. What is your assessment of the manner in which PCM is managing its assets? Pay attention to both trends and industry averages. Financing of Assets 5. What is your assessment of the manner in which PCM is financing its assets? Pay attention to both trends and industry averages. What is the relationship between the total debt ratio and times interest earned as these relate to PCM? And is there any other possible explanation (outside of the firm's financial statements) for the observed trend in times interest earned? Profitability 6. What can you say about PCM's operating profit margin and pre-tax net profit margin? Explain any patterns observed. 7. How are PCM's pre-tax net profit margin, total asset turnover, and total debt ratio affecting the firm's pre-tax retum on assets (ROA) and retum on equity (ROE)? What is your overall assessment of the fim's profitability, including its earnings per share (EPS)? Cash Flow 8. Referring to PCM's statement of cash flow for 2004 and 2005, assess PCM's cash flow situation noting both inflows and outflows? Overall Evaluation 9. Based on your answers to the questions above, what is your overall evaluation of PCM's financial condition? (Pull all your analysis together in answering this question.) 10. What is the market's assessment of PCM's financial condition? Explain. Does the market's assessment confirm or refute your analysis? 11. Based on your evaluation of PCM and the market's assessment of the fim, would you accept employment with the company? Explain. Exhibit 1 Plush Carpet Mill, Inc. Balance Sheets ($000) December 31 2004 2003 2005 Assets Current assets Cash Accounts receivable Inventories Prepaid expenses Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Intangible assets All other noncurrent assets Total Assets 1,512 6,237 4,536 3.780 16,065 6,300 2.050 4,250 567 1.323 22.205 1,176 10,271 7,838 5.140 24,425 9,080 2.958 6,122 588 1,790 32,925 1,097 15,919 12,570 6.840 36,426 12,918 4,250 8,668 605 1.985 47.684 Liabilities and Stockholders Equity Current liabilities Notes payable Current maturities--L.T.D. Accounts payable Income taxes payable Accruals Total current liabilities Long-term debt Total Liabilities Stockholder's equity Common stock Paid-in capital Retained earnings Total stockholders' equity Total liabilities & equity 1,205 1,008 3,570 84 1.995 7,862 2.940 10,802 3,243 1,460 5,958 336 3.360 14,357 6.100 20,457 3,360 2,100 7.008 12.468 32.925 6,323 2,246 9,955 336 5,016 23,876 9.350 33,226 3,360 2,100 5.943 11.403 22.205 3,360 2,100 8998 14.458 47.684 Market price per common share 17.25 17.71 18.43 Exhibit 1 (continued) Exhibit 1 (continued) Plush Carpet Mill, Inc. Income Statements ($000) 2003 2004 2005 Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses 50,400 35.431 14,969 65,100 45.872 19,228 81,312 57.098 24,214 42,000,000 shares authorized at $3 par. Number of shares issued and outstanding in 2003-05: 1,120,000. PAGE} Gen. A Adm. and Selling Depreciation Total operating expense Operating income (EBIT) Less: Interest expense Earnings before taxes (EBT) Less: Income taxes (34%) Net income 12,331 630 12.961 2,008 335 1,673 569 1.104 15,099 908 16.007 3,221 756 2,465 838 1.627 17.296 1.292 18.588 5,626 1.343 4,283 1.456 2.827 Dividends paid 314 562 837