Please

calculate the ratios for 2019 and analysis of where the company is now,

where the strengths are and the weaknesses are, what it must do to regain its financial

health, and what actions should be taken.

Please submit on letter size paper and include detailed math calculation steps, final results,

clear verbal explanation on weaknesses and strengths, and your recommendations.

th

with a hardcopy turned in class and you are also required to upload

the paper to Canvas. Failure to do either will give you zero point for the project.

Balance Sheets

Assets

2017

2018

2019

Cash

$ 9,000

$ 7,282

$ 14,000

Short-Term Investments.

48,600

20,000

71,632

Accounts Receivable

351,200

632,160

878,000

Inventories

715,200

1,287,360

1,716,480

Total Current Assets

$ 1,124,000

$ 1,946,802

$ 2,680,112

Gross Fixed Assets

491,000

1,202,950

1,220,000

Less: Accumulated Depreciation

146,200

263,160

383,160

Net Fixed Assets

$ 344,800

$ 939,790

$ 836,840

Total Assets

$ 1,468,800

$ 2,886,592

$ 3,516,952

Liabilities And Equity

2017

2018

2019

Accounts Payable

$ 145,600

$ 324,000

$ 359,800

Notes Payable

200,000

720,000

300,000

Accruals

136,000

284,960

380,000

Total Current Liabilities

$ 481,600

$ 1,328,960

$ 1,039,800

Long-Term Debt

323,432

1,000,000

500,000

Common Stock (100,000 Shares)

460,000

460,000

1,680,936

Retained Earnings

203,768

97,632

296,216

Total Equity

$ 663,768

$ 557,632

$ 1,977,152

Total Liabilities And Equity

$ 1,468,800

$ 2,886,592

$ 3,516,952

Income Statements

2017

2018

2019

Sales

$ 3,432,000

$ 5,834,400

$ 7,035,600

Cost Of Goods Sold

2,864,000

4,980,000

5,800,000

Other Expenses

340,000

720,000

612,960

Depreciation

18,900

116,960

120,000

Total Operating Costs

$ 3,222,900

$ 5,816,960

$ 6,532,960

EBIT

$ 209,100

$ 17,440

$ 502,640

Interest Expense

62,500

176,000

80,000

EBT

$ 146,600

$ (158,560)

$ 422,640

Taxes (40%)

58,640

(63,424)

169,056

Net Income

$ 87,960

$ (95,136)

$ 253,584

Other Data

2017

2018

2019

Stock Price

$ 8.50

$ 6.00

$ 12.17

Shares Outstanding

100,000

100,000

250,000

EPS

$ 0.880

$ (0.951)

$ 1.014

DPS

$ 0.220

$ 0.110

$ 0.220

Tax Rate

40%

40%

40%

Book Value Per Share

$ 6.638

$ 5.576

$ 7.909

Lease Payments

$ 40,000

$ 40,000

$ 40,000

Ratio Analysis

2017

2018

2019

Industry Average

Current

2.3

1.5

2.7

Quick

0.8

0.5

1.0

Inventory Turnover

4.8

4.5

6.1

Days Sales Outstanding

37.4

39.5

32.0

Fixed Assets Turnover

10.0

6.2

7.0

Total Assets Turnover

2.3

2.0

2.5

Debt to Invested Capital

44.1%

75.5%

40.0%

TIE

3.3

0.1

6.2

Profit Margin

2.6%

-1.6%

3.6%

Basic Earning Power

14.2%

0.6%

17.8%

ROA

6.0%

-3.3%

9.0%

ROE

13.3%

-17.1%

17.9%

Price/Earnings (P/E)

9.7

-6.3

16.2

Market/Book

1.3

1.1

2.9