please help me to solve please help me to solve this problem as soon as you can

thank you

furniture. In In the spring of 2020, Mohammed Khalid was an analyst at an investment bank who had recently graduated from the MBA program. As an initial assignment, his supervisor had given him the task of analyzing the financial position of JBC Stores. Khalid was interested in JBC Stores because it was one of his favorite places to shop. However, recently he had read in the business press that JBC's stock had fallen dramatically, dropping from a high of $20 per share to less than $2, despite the fact that the company was known to pay out relatively constant dividends to its shareholders. JBC was an established retailer that had been in business for over 15 years. In recent times, management had undertaken a series of new business strategies, one of which was to expand the number of JBC's new supercenter stores, while phasing out the traditional discount stores. The supercenter stores carried a greater selection of durable goods, such as appliances and In order to entice customers to purchase these more nad customers. Each individual store manager was responsible for authorizing the opening of store credit accounts and ultimately had the final say as to whether credit would be granted to a customer. Store managers were paid an annual bonus, based on net income for their respective store, and were known for being quite lenient in granting credit in order to increase net income for the year and therefore, the size of their bonus. its Khalid wondered whether these new strategies were responsible for the decline in JBC's share price, which he had read about. To collect the financial statement information that he required to complete his assignment, he went to a business reference library and obtained JBC's balance sheets and statements of income for the fiscal years ending 2012 through 2020 (see Exhibits 1 and 2). Armed with these financial statements and the information he had learned in his MBA studies, Khalid calculated the most important financial ratios. Question 1 a. Calculate the 14 ratios done in Exhibit 3 for each year from 2012 to 2020 (use excel attached). b. Do you notice any trends? c. What insights do these trends provide into the operations of JBC? Question 2 Prepare statements of cash flows for JBC for each year from 2012 to 2020. Question 3 a. What do the cash flow statements show? b. What does this mean for the future viability of the firm? c. How helpful is this analysis in understanding the company's stock price performance? Income statement Balance sheet Cash flow ratios 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Assets Current assets Cash and cash equivalents Accounts receivable Inventories Prepaid expenses 107,065 526,536 718,379 12,900 1,364,879 194,263 191,582 1,750,724 178,008 523,508 828,799 14,741 1,545,055 205.972 228,141 1,979, 167 118,873 633,140 871.940 16,967 1,640,920 293,170 225,777 2,159,867 135,071 156,509 161.407 236,593 146,856 218,084 377.981 734.819 1.747.795 1.992.043 2.272,593 2.272,593 2,582,735 2,578,811 2,062,047 989,460 1,054,220 1.236.295 1,417,516 1,896,184 2,138,723 1,933,316 19,558 23,906 24,898 25,524 31,551 34,641 31,281 1,878,909 2,982,429 3,414,643 3,952,227 4,657,326 4,970,258 4,404,625 310.754 109,514 124,905 164,914 180.167 221.880 248,045 233,565 262,506 293,455 366.263 433,881 479,270 483,769 2,423,227 3,354,450 3,833,0034,483,403 5,271,373 5,671,4095,136,439 Other assets Property, plant and equipment Total assets Liabilities and shareholders' equity Current liabilities Short-term notes payable Accounts payable Corporate income taxes payable 0 0 0 280,550 173,580 454,131 316,454 264,974 581,428 0 358,091 301,286 659,376 458,479 366,149 824,628 864,399 1,169,5101,128,319 1,851,102 2,150,399 2.847,600 448,897 496,070 548,218 495,564 497,775 613,235 427,154 512.834 580.550 657,876 489,208 93,496 1,740,449 2,178,414 2,257,087 3,004,542 3,137,382 3,554,331 Long term liabilities Long-term debt Deferred corporate income taxes Other liabilities Shareholders' equity Share capital Retained earnings 332,220 29,753 22.705 332,220 33,384 24,485 297,204 35,837 25.097 205,269 37,688 26,193 168,018 39,330 27,047 153,301 40,426 27,399 609,538 45,865 24,926 601.185 56,601 22,278 896,396 69,524 19,914 1,031,477 0 0 10,361 265,387 646,528 911,915 1,750.724 278,177 729,474 1,007,651 1,979,167 324,479 817,873 1,142,352 2,159,867 429,575 899,874 1,329,448 2,423,227 374,977 339,819 385,551 347,336 357,265 361.470 1,004,628 1,093,644 1,160,436 1,239,432 1,190,928 178.801 1,379,605 1,433,463 1,545,986 1,586,768 1,548,193 540,271 3,354,450 3,833,003 4,483,403 5,271,373 5,671,409 5,136,439 Total liabilities and equity Income statement Balance sheet Cash flow ratios 2020 2012 2013 4,380,7814,661,730 3,063,775 3,263,250 1,317,006 1,398,480 2014 5,197,264 3,647,178 2015 5,764,805 3,880,666 1,884,138 2016 5,975,764 4,001,789 1,973,975 2017 2018 2019 6,541,1797,823,781 8,798,007 4,419,651 5,340,489 6,088,857 2,121,529 2,483,292 2,709,150 8,382,338 6,185,305 2,197,033 1,550,086 Sales Cost of goods sold Gross profit Operating expenses Amortization of property, plant and equipment Selling, general, and administrative expenses Interest expense Operating income Other income Net income (loss) before taxes Provision for income taxes Net Income (loss) after taxes Dividends Retained earnings for the year Opening retained earnings Closing retained earnings Other Data Earnings per share 35,709 38,931 39,810 982,166 1,045,211 1.130,806 45,894 56,069 65,505 1,063,7691,140,212 1,236,120 253,237 258,268 313,966 14,808 22,757 27,247 268,045 281,025 341,213 118,223 124,440 161,364 149,822 156,584 179,849 66,876 68,186 97,848 82,946 88,399 82,001 646,528 729,474 817,873 729,474 817,873 899,874 42,581 45,652 50,198 56,971 62,932 1,412,680 1,519,427 1.723,932 2,052,0422.501,000 73,582 92,219 80,540 102,647 114,160 1,528,843 1,657,298 1,854,670 2,211,6602,678,092 355,296 316,676 266,858 271,632 31,058 23,479 26,825 26,027 29,914 36,293 378,774 343,501 292,886 301,546 67,350 180,348 155,669 125,769 122,209 15,609 198,426 187,832 167,117 179,336 51,741 93,672 98,816 100,325 100,340 100,245 104,754 89,016 66.791 78,996 (48,504) 899,874 1,004,628 1,093,644 1,160,4361,239,432 1,004,628 1,093,644 1.160,436 1,239,432 1,190,928 63,521 3,533,387 179,261 3,776,169 (1,579,136) 30,668 (1,548,468) (557,493) (990,975) 21,153 (1,012,127) 1,190,928 178,801 $1.75 $1.90 $2.09 $2.01 $1.85 $1.58 $1.74 $0.53 ($8.92) Exhibit 3 JBC STORES FINANCIAL RATIOS Profitability ratios: Gross profit margin Gross income/sales Net profit margin net income after tax/sales Return on assets net income after tax /total assets Return on equity net income after tax/shareholders' equity Turnover ratios: Inventory turnover cost of goods sold/inventory Days Inventory 365 / Inventory turnover Total asset turnover revenue/total assets Receivables turnover accounts receivable/(sales/365) Days receivables 365 / Receivables turnover Liquidity ratios: Current ratio current assets/current liabilities Quick ratio (cash and cash equivalents + accounts receivable)/current liabilities Solvency ratios: Debt to equity ratio total liabilities/shareholders' equity Debt to asset ratio total liabilities/total assets Interest coverage time Earnings before interest and tax / interest expense furniture. In In the spring of 2020, Mohammed Khalid was an analyst at an investment bank who had recently graduated from the MBA program. As an initial assignment, his supervisor had given him the task of analyzing the financial position of JBC Stores. Khalid was interested in JBC Stores because it was one of his favorite places to shop. However, recently he had read in the business press that JBC's stock had fallen dramatically, dropping from a high of $20 per share to less than $2, despite the fact that the company was known to pay out relatively constant dividends to its shareholders. JBC was an established retailer that had been in business for over 15 years. In recent times, management had undertaken a series of new business strategies, one of which was to expand the number of JBC's new supercenter stores, while phasing out the traditional discount stores. The supercenter stores carried a greater selection of durable goods, such as appliances and In order to entice customers to purchase these more nad customers. Each individual store manager was responsible for authorizing the opening of store credit accounts and ultimately had the final say as to whether credit would be granted to a customer. Store managers were paid an annual bonus, based on net income for their respective store, and were known for being quite lenient in granting credit in order to increase net income for the year and therefore, the size of their bonus. its Khalid wondered whether these new strategies were responsible for the decline in JBC's share price, which he had read about. To collect the financial statement information that he required to complete his assignment, he went to a business reference library and obtained JBC's balance sheets and statements of income for the fiscal years ending 2012 through 2020 (see Exhibits 1 and 2). Armed with these financial statements and the information he had learned in his MBA studies, Khalid calculated the most important financial ratios. Question 1 a. Calculate the 14 ratios done in Exhibit 3 for each year from 2012 to 2020 (use excel attached). b. Do you notice any trends? c. What insights do these trends provide into the operations of JBC? Question 2 Prepare statements of cash flows for JBC for each year from 2012 to 2020. Question 3 a. What do the cash flow statements show? b. What does this mean for the future viability of the firm? c. How helpful is this analysis in understanding the company's stock price performance? Income statement Balance sheet Cash flow ratios 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Assets Current assets Cash and cash equivalents Accounts receivable Inventories Prepaid expenses 107,065 526,536 718,379 12,900 1,364,879 194,263 191,582 1,750,724 178,008 523,508 828,799 14,741 1,545,055 205.972 228,141 1,979, 167 118,873 633,140 871.940 16,967 1,640,920 293,170 225,777 2,159,867 135,071 156,509 161.407 236,593 146,856 218,084 377.981 734.819 1.747.795 1.992.043 2.272,593 2.272,593 2,582,735 2,578,811 2,062,047 989,460 1,054,220 1.236.295 1,417,516 1,896,184 2,138,723 1,933,316 19,558 23,906 24,898 25,524 31,551 34,641 31,281 1,878,909 2,982,429 3,414,643 3,952,227 4,657,326 4,970,258 4,404,625 310.754 109,514 124,905 164,914 180.167 221.880 248,045 233,565 262,506 293,455 366.263 433,881 479,270 483,769 2,423,227 3,354,450 3,833,0034,483,403 5,271,373 5,671,4095,136,439 Other assets Property, plant and equipment Total assets Liabilities and shareholders' equity Current liabilities Short-term notes payable Accounts payable Corporate income taxes payable 0 0 0 280,550 173,580 454,131 316,454 264,974 581,428 0 358,091 301,286 659,376 458,479 366,149 824,628 864,399 1,169,5101,128,319 1,851,102 2,150,399 2.847,600 448,897 496,070 548,218 495,564 497,775 613,235 427,154 512.834 580.550 657,876 489,208 93,496 1,740,449 2,178,414 2,257,087 3,004,542 3,137,382 3,554,331 Long term liabilities Long-term debt Deferred corporate income taxes Other liabilities Shareholders' equity Share capital Retained earnings 332,220 29,753 22.705 332,220 33,384 24,485 297,204 35,837 25.097 205,269 37,688 26,193 168,018 39,330 27,047 153,301 40,426 27,399 609,538 45,865 24,926 601.185 56,601 22,278 896,396 69,524 19,914 1,031,477 0 0 10,361 265,387 646,528 911,915 1,750.724 278,177 729,474 1,007,651 1,979,167 324,479 817,873 1,142,352 2,159,867 429,575 899,874 1,329,448 2,423,227 374,977 339,819 385,551 347,336 357,265 361.470 1,004,628 1,093,644 1,160,436 1,239,432 1,190,928 178.801 1,379,605 1,433,463 1,545,986 1,586,768 1,548,193 540,271 3,354,450 3,833,003 4,483,403 5,271,373 5,671,409 5,136,439 Total liabilities and equity Income statement Balance sheet Cash flow ratios 2020 2012 2013 4,380,7814,661,730 3,063,775 3,263,250 1,317,006 1,398,480 2014 5,197,264 3,647,178 2015 5,764,805 3,880,666 1,884,138 2016 5,975,764 4,001,789 1,973,975 2017 2018 2019 6,541,1797,823,781 8,798,007 4,419,651 5,340,489 6,088,857 2,121,529 2,483,292 2,709,150 8,382,338 6,185,305 2,197,033 1,550,086 Sales Cost of goods sold Gross profit Operating expenses Amortization of property, plant and equipment Selling, general, and administrative expenses Interest expense Operating income Other income Net income (loss) before taxes Provision for income taxes Net Income (loss) after taxes Dividends Retained earnings for the year Opening retained earnings Closing retained earnings Other Data Earnings per share 35,709 38,931 39,810 982,166 1,045,211 1.130,806 45,894 56,069 65,505 1,063,7691,140,212 1,236,120 253,237 258,268 313,966 14,808 22,757 27,247 268,045 281,025 341,213 118,223 124,440 161,364 149,822 156,584 179,849 66,876 68,186 97,848 82,946 88,399 82,001 646,528 729,474 817,873 729,474 817,873 899,874 42,581 45,652 50,198 56,971 62,932 1,412,680 1,519,427 1.723,932 2,052,0422.501,000 73,582 92,219 80,540 102,647 114,160 1,528,843 1,657,298 1,854,670 2,211,6602,678,092 355,296 316,676 266,858 271,632 31,058 23,479 26,825 26,027 29,914 36,293 378,774 343,501 292,886 301,546 67,350 180,348 155,669 125,769 122,209 15,609 198,426 187,832 167,117 179,336 51,741 93,672 98,816 100,325 100,340 100,245 104,754 89,016 66.791 78,996 (48,504) 899,874 1,004,628 1,093,644 1,160,4361,239,432 1,004,628 1,093,644 1.160,436 1,239,432 1,190,928 63,521 3,533,387 179,261 3,776,169 (1,579,136) 30,668 (1,548,468) (557,493) (990,975) 21,153 (1,012,127) 1,190,928 178,801 $1.75 $1.90 $2.09 $2.01 $1.85 $1.58 $1.74 $0.53 ($8.92) Exhibit 3 JBC STORES FINANCIAL RATIOS Profitability ratios: Gross profit margin Gross income/sales Net profit margin net income after tax/sales Return on assets net income after tax /total assets Return on equity net income after tax/shareholders' equity Turnover ratios: Inventory turnover cost of goods sold/inventory Days Inventory 365 / Inventory turnover Total asset turnover revenue/total assets Receivables turnover accounts receivable/(sales/365) Days receivables 365 / Receivables turnover Liquidity ratios: Current ratio current assets/current liabilities Quick ratio (cash and cash equivalents + accounts receivable)/current liabilities Solvency ratios: Debt to equity ratio total liabilities/shareholders' equity Debt to asset ratio total liabilities/total assets Interest coverage time Earnings before interest and tax / interest expense