Please make sure that you use excel spreadsheet to complete this assignment. Go to your textbook page P140-141 (Dayton Products, Inc) and provide solutions to spreadsheet exercise problems a, b, and c.

141 CHAPTER 3 Financial Statements and Ratio Analysis You also have the following balance sheet information as of December 31, 2019 and 2018, respectively Amal Balance Shorts Values in Millions December 31, 2019 December 31, 2018 $ 9,090 $ 6,547 Rai 21,163 19,549 8,068 7,904 Other curs 1,831 1,681 Property, plant and equipment, gros 204,960 187,519 Amated depreciation and depletios 110,020 97,917 Ochrona 19,413 17.891 As payable 13,792 22,862 Short-term dele payable 4,093 3,703 Other curribilities 15,290 Long-te debe payable 3,549 6,655 7,099 Other Doncurrent liabilities 16,484 16.359 21,733 16,441 76,458 Deferred income taxes 73,161 6.8 billion 6.7 billion Retained earnings Total common shares outstanding TO DO . Create a spreadsheet similar to Table 3.1 to model the following: (1) A multiple-step comparative income statement for Dayton Inc. for the peri- ods ending December 31, 2019 and 2018. You must calculate the cost of goods sold for the year 2019. (2) A common-size income statement for Dayton Inc. covering the years 2019 and 2018 b. Create a spreadsheet similar to Table 3.2 to model the following: (1) A detailed, comparative balance sheet for Dayton Inc. for the years ended December 31, 2019 and 2018. (2) A common-size balance sheet for Dayton Inc. covering the years 2019 and 2018. c. Create a spreadsheet similar to Table 3.10 to perform the following analysis: (1) Create a table that reflects both 2019 and 2018 operating ratios for Dayton Inc., segmented into (a) liquidity, (b) activity, (c) debt, (d) profitability, and (e) market. Assume that the current market price for the stock is $90. (2) Compare the 2019 ratios to the 2018 ratios. Indicate whether the results year." "outperformed the prior year" or "underperformed relative to the prior 2015 2019 31 PUTO T40 10 125 by the 2018 ratio from the year 2019 ratio and then To the degree of change calculate the year-to-year proportional de by the year 2018 at Multiply the result by 100. Preserve the the origines Thema is the percentage change in the ratio from Formatia charchows arco-dence of 10 or more, the 2 Gilete the proportional change for the ratios shown bere For the candlunes 25% or more. look at the other to at least one ocher change that may have contributed to the change in the the difference is in the company's favor or not. you are coming 3-2 ETHICS PROBLEM Do some reading in periodicals or on the Internet to find more about the Sarbanes-Odeyer's provisions for companies. Select one o pro and indicate why you think financial statements will be more than thy it company financial executives implement this provision of SOX, SPREADSHEET EXERCISE The incrime statement and balance sheet are the primary reports that afirm comme for use by management and for distribution to stockholders, regulatory bodies and general public. They are the primary sources of historical financial information the firm. Duyton Products loc. is a moderate-sized manufacturer. The company's agement has asked you to perform a detailed financial statement analysis of the fin The income statements for the years ending December 31, 2019 and 2 respectively, are presented in the following table. Income Same Values in Mins) For the year ended December 31, 2019 Sale 5173.909 Cost loodud Selling and deepers 109,701 12.355 33.572 12,103 3.147 398 December 31, 2 5187310 Other Diyainan imai Oct FIT NEBT 12900 337 7944 3.0 23 Incette Dividends paid persone Basic Efron total operations 21% $1.15 51.64 incomestatement (2) incomestatement balancesheet (2) balancesheet rati Dayton, Inc. Annual Income Statement (Values in Millions) Common Size 2019 2018 100.0% 100.0% 61.3% 59.5% 38.7% 40.5% 6.9% 6.9% Sales Cost of Sales Gross Operating Profit Selling, General & Admin. Expense Other Taxes EBITDA Depreciation & Amortization EBIT Other Income,Net Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes Income Taxes Net Income Available to Common 2019 178,909 109,701 69,208 12,356 33.572 23,280 12.103 11,177 3.147 14,324 398 13,926 2018 187,510 111,631 75,879 12,900 33.377 29,602 7.944 21,658 3.323 24,981 293 24,688 18.8% 13.0% 6.8% 6.2% 1.8% 8.0% 0.2% 7.8% 17.8% 15.8% 4.2% 11.6% 1.8% 13.3% 0.2% 13.2% 0.21 tax rate 13,926 24,688 7.8% 13.2% Dividends per share EPS 1.496 1.71 0.91 1.15 1.64 0.91 2.87 Computation of 2012 Cost of Sales: Beginning Inventory Purchases Goods Available Cost of Sales Ending Inventory 7,904 109,865 117,769 109,701 8,068 balancesheet ratios (2) ratios incomestatement (2) incomestatement balancesheet (2) Dayton, Inc. Annual Income Statement (Values in Millions) 2019 178,909 109.701 69,208 Sales Cost of Sales Gross Operating Profit Selling, General & Admin. Expense Other Taxes EBITDA Depreciation & Amortization EBIT Other Income,Net Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes Income Taxes Net Income Available to Common 2018 187,510 111.631 75,879 12,900 33.377 29,602 7.944 21,658 3.323 24,981 293 24,688 5.184 19,503.52 Common Size 2019 2018 100.0% 100.0% 59.5% 40.5% 6.9% 17.8% 15.8% 4,2% 11.6% 1.8% 13.3% 0.2% 13.2% 0.21 tax rate 10.4% Dividends per share EPS 1.15 1.64 0.91 2.87 Computation of 2019 Cost of Sales: Beginning Inventory Purchases Goods Available Cost of Sales Ending Inventory 7.904 109.865 117,769 109.701 8.068 incomestatement (2) incomestatement balancesheet (2) balancesheet Dayton, Inc. Annual Balance Sheet (Values in Millions) Common Size 2019 2018 2019 2018 Assets Current Assets Cash and Equivalents Receivables Inventories Other Current Assets Total Current Assets 4.57% 13.65% 7,229 21,163 8,068 1.831 38,291 6,547 19,549 7,904 1,681 35,681 4.74% 13.86% 5.29% 1.20% 25.09% 5.52% 1.17% 24.92% 134.3% 131.0% Non-Current Assets Property, Plant & Equipment, Gros2204,960 Accum. Depreciation & Depletion 110,020 Property, Plant & Equipment, Net 94,940 Other Non-Current Assets 19,413 Total Non-Current Assets 114,353 187,519 97,917 89,602 17.891 107,493 62.2% 12.7% 74.9% 62.6% 12.5% 75.1% Total Assets 152,644 143,174 100.0% 100.0% Liabilities & Shareholder's Equity Current Liabilities Accounts Payable 13,792 Short Term Debt 4,093 Other Current Liabilities 15,290 Total Current Liabilities 33,175 22,862 3,703 3,549 30,114 9.0% 2.7% 10.0% 21.7% 16.0% 2.6% 2.5% 21.0% Non-Current liabilites Long Term Debt Deferred Income Taxes Other Non-Current Liabilities Total Non-Current Liabilities Total Liabilities 6,655 16,484 21.733 44,872 78,047 7,099 16,359 16,441 39,899 70,013 4.4% 10.8% 14.2% 29.4% 51.1% 5.0% 11.4% 11.5% 27.9% 48.9% Retained Earnings Total Equity 74,597 74,597 73.161 73,161 48.9% 48.9% 51.1% 51.1% Total Liabilities & Stock Equity 152,644 143,174 100.0% 100.0% Total Common Shar 6.7 Bil Treasury Shares 13 Bil 6.8 Bil 12 Bil incomestatement (2) incomestatement balancesheet (2) balancesheet ratios (2) ratios Dayton, Inc. Annual Balance Sheet (Values in Millions) Common Size 2019 2018 2019 2018 9,090 8,068 6,547 19,549 7,904 1.681 35,681 4.57% 13.65% 5.52% 1.17% 24.92% 131.0% 187,519 97,917 89,602 17.891 107,493 62.6% 12.5% 75.1% Assets Current Assets Cash and Equivalents Receivables Inventories Other Current Assets Total Current Assets Non-Current Assets Property, Plant & Equipment, Gross Accum, Depreciation & Depletion Property, Plant & Equipment, Net Other Non-Current Assets Total Non-Current Assets Total Assets Liabilities & Shareholder's Equity Current Liabilities Accounts Payable Short Term Debt Other Current Liabilities Total Current Liabilities Non-Current liabilites Long Term Debt Deferred Income Taxes Other Non-Current Liabilities Total Non-Current Liabilities Total Liabilities 143,174 100.0% 22,862 3,703 3,549 30.114 16.0% 2.6% 2.5% 21.0% 7,099 16,359 16,441 39,899 70,013 5.0% 11.4% 11.5% 27.9% 48.9% 73.161 73,161 51.1% 51.1% Retained Earnings Total Equity Total Liabilities & Stock Equity Total Common Shares Outstanding Treasury Shares 143.174 100.0% 6.7 Bil 1.3 Bil 6.8 Bit 1.2 Bil incomestatement (2) incomestatement balancesheet (2) balancesheet ratios (2) ratios 2019 Liquidity Current Ratio Quick Ratio 13.60 26.84 Activity Inventory Turnover Average Days of Inventory A/R Turnover Average Collection Period Fixed Asset Turnover Total Asset Turnover Debt Debt-to-Asset Ratio Times Interest Earned Profitability Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Assets Return on Equity 38.7% 0.0% 0.0% 6,700,000,000 1.71 Market Ratios outstanding stock Earnings Per Share Cash Flow per Share Price P/E ratio PICF ratio 90 52.62 incomestatement (2) incomestatement balancesheet ratios (2) ratios balancesheet (2) Dayton, Inc. Operating Ratios 2019 2018 Analysis: Compare Firm 2018 to Firm 2019 Liquidity Current Ratio Quick Ratio 1.18 0.92 Worse than last year Worse than last year Activity Inventory Turnover Average Days of Inventory A/R Turnover Average Collection Period Fixed Asset Turnover Total Asset Turnover 14.12 25.49 9.59 37.53 1.74 1.31 Debt Debt-to-Asset Ratio Times Interest Earned 48.9% 85.26 Profitability Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Assets Return on Equity 40.5% 13.3% 10.4% 13.6% 26.7% Market Ratios outstanding stock Earnings Per Share 6,700,000,000 1.71 6,800,000,000 2.253 2019 T TWO Tool 2015 IS 16.2 LEN 107 140 Boncing the year 2018 ratio from the year 2019 ratio and then de To focus on the degree of chanculate the year.co-year proportion by the year 2015 ratio Multiply the result by 100. Preserve b. The result is the percentage change in the ratio from For any ratio that shows a yo-year difference of 10% or more, state we 10 2019. Calculate the proportional change for the ratios shown here. at least one other change that my have contributed to the change in the For the most significant changes25% or more, look at the other ration the difference is in the company's favor or not. you are discussing -7-28 ETHICS PROBLEM Do some reading in periodicals or on the Internet to find more about the Sarbanes-Oxley Act's provisions for companies. Select one of the provisions, and indicate why you think financial statements will be more trust thy it company financial executives implement this provision of SOX. ET EXERCISE The income statement and balance sheet are the primary reports that a firm como for use by management and for distribution to stockholders, regulatory bodies, and general public . They are the primary sources of historical financial information abu the firm Dayton Products Inc. is a moderate-sized manufacturer. The company's agement has asked you to perform a detailed financial statement analysis of the fins The income statements for the years ending December 31, 2019 and 2 respectively, are presented in the following table. December 31, 2011 5157.510 Sales Cout of gods sold Selig, geenland dieses Ode taxe Depreciation and station Other income to ERIT to Live ERT Amal Income Statements Values is Mis) For the year ended December 31, 2019 5178.909 109,701 12,356 33,572 12,103 3,147 398 12.900 33:17 734 Mat Income tax rate Dividends paid per share Basic Els from tal operations 21% 51.15 51.64 349 52 141 Financial Statements and Ratio Analysis CHAPTER 3 You also have the following balance sheet information as of December 31, 2019 and 2018, respectively Annual Balance Sheets (Values in Millions) December 31, 2019 December 31, 2018 $ 6,547 $9,090 Cash 19,549 21,163 Reivables Inventories 8,068 7,904 Other current assets 1,831 1,681 Property, plant, and equipment, gross 204,960 187,519 Accumulated depreciation and depletion 110,020 97,917 Other noncurrent assets 19,413 17,891 Accounts payable 13,792 22,862 Short-term debt payable 4,093 3,703 Other current liabilities 15,290 3,549 Long-term debe payable 6,655 7,099 16,484 Other noncurrent liabilities 16,359 21,733 16,441 76,458 73,161 6.7 billion 6.8 billion Deferred income taxes Retained earnings Total common shares outstanding TO DO a. Create a spreadsheet similar to Table 3.1 to model the following: (1) A multiple-step comparative income statement for Dayton Inc. for the peri- ods ending December 31, 2019 and 2018. You must calculate the cost of goods sold for the year 2019. (2) A common-size income statement for Dayton Inc. covering the years 2019 and 2018. b. Create a spreadsheet similar to Table 3.2 to model the following: (1) A detailed, comparative balance sheet for Dayton Inc. for the years ended December 31, 2019 and 2018. (2) A common-size balance sheet for Dayton Inc. covering the years 2019 and 2018. c. Create a spreadsheet similar to Table 3.10 to perform the following analysis: (1) Create a table that reflects both 2019 and 2018 operating ratios for Dayton Inc., segmented into (a) liquidity, (b) activity, (c) debt, (d) profitability, and (e) market. Assume that the current market price for the stock is $90. (2) Compare the 2019 ratios to the 2018 ratios. Indicate whether the results "outperformed the prior year or underperformed relative to the prior year." 141 CHAPTER 3 Financial Statements and Ratio Analysis You also have the following balance sheet information as of December 31, 2019 and 2018, respectively Amal Balance Shorts Values in Millions December 31, 2019 December 31, 2018 $ 9,090 $ 6,547 Rai 21,163 19,549 8,068 7,904 Other curs 1,831 1,681 Property, plant and equipment, gros 204,960 187,519 Amated depreciation and depletios 110,020 97,917 Ochrona 19,413 17.891 As payable 13,792 22,862 Short-term dele payable 4,093 3,703 Other curribilities 15,290 Long-te debe payable 3,549 6,655 7,099 Other Doncurrent liabilities 16,484 16.359 21,733 16,441 76,458 Deferred income taxes 73,161 6.8 billion 6.7 billion Retained earnings Total common shares outstanding TO DO . Create a spreadsheet similar to Table 3.1 to model the following: (1) A multiple-step comparative income statement for Dayton Inc. for the peri- ods ending December 31, 2019 and 2018. You must calculate the cost of goods sold for the year 2019. (2) A common-size income statement for Dayton Inc. covering the years 2019 and 2018 b. Create a spreadsheet similar to Table 3.2 to model the following: (1) A detailed, comparative balance sheet for Dayton Inc. for the years ended December 31, 2019 and 2018. (2) A common-size balance sheet for Dayton Inc. covering the years 2019 and 2018. c. Create a spreadsheet similar to Table 3.10 to perform the following analysis: (1) Create a table that reflects both 2019 and 2018 operating ratios for Dayton Inc., segmented into (a) liquidity, (b) activity, (c) debt, (d) profitability, and (e) market. Assume that the current market price for the stock is $90. (2) Compare the 2019 ratios to the 2018 ratios. Indicate whether the results year." "outperformed the prior year" or "underperformed relative to the prior 2015 2019 31 PUTO T40 10 125 by the 2018 ratio from the year 2019 ratio and then To the degree of change calculate the year-to-year proportional de by the year 2018 at Multiply the result by 100. Preserve the the origines Thema is the percentage change in the ratio from Formatia charchows arco-dence of 10 or more, the 2 Gilete the proportional change for the ratios shown bere For the candlunes 25% or more. look at the other to at least one ocher change that may have contributed to the change in the the difference is in the company's favor or not. you are coming 3-2 ETHICS PROBLEM Do some reading in periodicals or on the Internet to find more about the Sarbanes-Odeyer's provisions for companies. Select one o pro and indicate why you think financial statements will be more than thy it company financial executives implement this provision of SOX, SPREADSHEET EXERCISE The incrime statement and balance sheet are the primary reports that afirm comme for use by management and for distribution to stockholders, regulatory bodies and general public. They are the primary sources of historical financial information the firm. Duyton Products loc. is a moderate-sized manufacturer. The company's agement has asked you to perform a detailed financial statement analysis of the fin The income statements for the years ending December 31, 2019 and 2 respectively, are presented in the following table. Income Same Values in Mins) For the year ended December 31, 2019 Sale 5173.909 Cost loodud Selling and deepers 109,701 12.355 33.572 12,103 3.147 398 December 31, 2 5187310 Other Diyainan imai Oct FIT NEBT 12900 337 7944 3.0 23 Incette Dividends paid persone Basic Efron total operations 21% $1.15 51.64 incomestatement (2) incomestatement balancesheet (2) balancesheet rati Dayton, Inc. Annual Income Statement (Values in Millions) Common Size 2019 2018 100.0% 100.0% 61.3% 59.5% 38.7% 40.5% 6.9% 6.9% Sales Cost of Sales Gross Operating Profit Selling, General & Admin. Expense Other Taxes EBITDA Depreciation & Amortization EBIT Other Income,Net Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes Income Taxes Net Income Available to Common 2019 178,909 109,701 69,208 12,356 33.572 23,280 12.103 11,177 3.147 14,324 398 13,926 2018 187,510 111,631 75,879 12,900 33.377 29,602 7.944 21,658 3.323 24,981 293 24,688 18.8% 13.0% 6.8% 6.2% 1.8% 8.0% 0.2% 7.8% 17.8% 15.8% 4.2% 11.6% 1.8% 13.3% 0.2% 13.2% 0.21 tax rate 13,926 24,688 7.8% 13.2% Dividends per share EPS 1.496 1.71 0.91 1.15 1.64 0.91 2.87 Computation of 2012 Cost of Sales: Beginning Inventory Purchases Goods Available Cost of Sales Ending Inventory 7,904 109,865 117,769 109,701 8,068 balancesheet ratios (2) ratios incomestatement (2) incomestatement balancesheet (2) Dayton, Inc. Annual Income Statement (Values in Millions) 2019 178,909 109.701 69,208 Sales Cost of Sales Gross Operating Profit Selling, General & Admin. Expense Other Taxes EBITDA Depreciation & Amortization EBIT Other Income,Net Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes Income Taxes Net Income Available to Common 2018 187,510 111.631 75,879 12,900 33.377 29,602 7.944 21,658 3.323 24,981 293 24,688 5.184 19,503.52 Common Size 2019 2018 100.0% 100.0% 59.5% 40.5% 6.9% 17.8% 15.8% 4,2% 11.6% 1.8% 13.3% 0.2% 13.2% 0.21 tax rate 10.4% Dividends per share EPS 1.15 1.64 0.91 2.87 Computation of 2019 Cost of Sales: Beginning Inventory Purchases Goods Available Cost of Sales Ending Inventory 7.904 109.865 117,769 109.701 8.068 incomestatement (2) incomestatement balancesheet (2) balancesheet Dayton, Inc. Annual Balance Sheet (Values in Millions) Common Size 2019 2018 2019 2018 Assets Current Assets Cash and Equivalents Receivables Inventories Other Current Assets Total Current Assets 4.57% 13.65% 7,229 21,163 8,068 1.831 38,291 6,547 19,549 7,904 1,681 35,681 4.74% 13.86% 5.29% 1.20% 25.09% 5.52% 1.17% 24.92% 134.3% 131.0% Non-Current Assets Property, Plant & Equipment, Gros2204,960 Accum. Depreciation & Depletion 110,020 Property, Plant & Equipment, Net 94,940 Other Non-Current Assets 19,413 Total Non-Current Assets 114,353 187,519 97,917 89,602 17.891 107,493 62.2% 12.7% 74.9% 62.6% 12.5% 75.1% Total Assets 152,644 143,174 100.0% 100.0% Liabilities & Shareholder's Equity Current Liabilities Accounts Payable 13,792 Short Term Debt 4,093 Other Current Liabilities 15,290 Total Current Liabilities 33,175 22,862 3,703 3,549 30,114 9.0% 2.7% 10.0% 21.7% 16.0% 2.6% 2.5% 21.0% Non-Current liabilites Long Term Debt Deferred Income Taxes Other Non-Current Liabilities Total Non-Current Liabilities Total Liabilities 6,655 16,484 21.733 44,872 78,047 7,099 16,359 16,441 39,899 70,013 4.4% 10.8% 14.2% 29.4% 51.1% 5.0% 11.4% 11.5% 27.9% 48.9% Retained Earnings Total Equity 74,597 74,597 73.161 73,161 48.9% 48.9% 51.1% 51.1% Total Liabilities & Stock Equity 152,644 143,174 100.0% 100.0% Total Common Shar 6.7 Bil Treasury Shares 13 Bil 6.8 Bil 12 Bil incomestatement (2) incomestatement balancesheet (2) balancesheet ratios (2) ratios Dayton, Inc. Annual Balance Sheet (Values in Millions) Common Size 2019 2018 2019 2018 9,090 8,068 6,547 19,549 7,904 1.681 35,681 4.57% 13.65% 5.52% 1.17% 24.92% 131.0% 187,519 97,917 89,602 17.891 107,493 62.6% 12.5% 75.1% Assets Current Assets Cash and Equivalents Receivables Inventories Other Current Assets Total Current Assets Non-Current Assets Property, Plant & Equipment, Gross Accum, Depreciation & Depletion Property, Plant & Equipment, Net Other Non-Current Assets Total Non-Current Assets Total Assets Liabilities & Shareholder's Equity Current Liabilities Accounts Payable Short Term Debt Other Current Liabilities Total Current Liabilities Non-Current liabilites Long Term Debt Deferred Income Taxes Other Non-Current Liabilities Total Non-Current Liabilities Total Liabilities 143,174 100.0% 22,862 3,703 3,549 30.114 16.0% 2.6% 2.5% 21.0% 7,099 16,359 16,441 39,899 70,013 5.0% 11.4% 11.5% 27.9% 48.9% 73.161 73,161 51.1% 51.1% Retained Earnings Total Equity Total Liabilities & Stock Equity Total Common Shares Outstanding Treasury Shares 143.174 100.0% 6.7 Bil 1.3 Bil 6.8 Bit 1.2 Bil incomestatement (2) incomestatement balancesheet (2) balancesheet ratios (2) ratios 2019 Liquidity Current Ratio Quick Ratio 13.60 26.84 Activity Inventory Turnover Average Days of Inventory A/R Turnover Average Collection Period Fixed Asset Turnover Total Asset Turnover Debt Debt-to-Asset Ratio Times Interest Earned Profitability Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Assets Return on Equity 38.7% 0.0% 0.0% 6,700,000,000 1.71 Market Ratios outstanding stock Earnings Per Share Cash Flow per Share Price P/E ratio PICF ratio 90 52.62 incomestatement (2) incomestatement balancesheet ratios (2) ratios balancesheet (2) Dayton, Inc. Operating Ratios 2019 2018 Analysis: Compare Firm 2018 to Firm 2019 Liquidity Current Ratio Quick Ratio 1.18 0.92 Worse than last year Worse than last year Activity Inventory Turnover Average Days of Inventory A/R Turnover Average Collection Period Fixed Asset Turnover Total Asset Turnover 14.12 25.49 9.59 37.53 1.74 1.31 Debt Debt-to-Asset Ratio Times Interest Earned 48.9% 85.26 Profitability Gross Profit Margin Operating Profit Margin Net Profit Margin Return on Assets Return on Equity 40.5% 13.3% 10.4% 13.6% 26.7% Market Ratios outstanding stock Earnings Per Share 6,700,000,000 1.71 6,800,000,000 2.253 2019 T TWO Tool 2015 IS 16.2 LEN 107 140 Boncing the year 2018 ratio from the year 2019 ratio and then de To focus on the degree of chanculate the year.co-year proportion by the year 2015 ratio Multiply the result by 100. Preserve b. The result is the percentage change in the ratio from For any ratio that shows a yo-year difference of 10% or more, state we 10 2019. Calculate the proportional change for the ratios shown here. at least one other change that my have contributed to the change in the For the most significant changes25% or more, look at the other ration the difference is in the company's favor or not. you are discussing -7-28 ETHICS PROBLEM Do some reading in periodicals or on the Internet to find more about the Sarbanes-Oxley Act's provisions for companies. Select one of the provisions, and indicate why you think financial statements will be more trust thy it company financial executives implement this provision of SOX. ET EXERCISE The income statement and balance sheet are the primary reports that a firm como for use by management and for distribution to stockholders, regulatory bodies, and general public . They are the primary sources of historical financial information abu the firm Dayton Products Inc. is a moderate-sized manufacturer. The company's agement has asked you to perform a detailed financial statement analysis of the fins The income statements for the years ending December 31, 2019 and 2 respectively, are presented in the following table. December 31, 2011 5157.510 Sales Cout of gods sold Selig, geenland dieses Ode taxe Depreciation and station Other income to ERIT to Live ERT Amal Income Statements Values is Mis) For the year ended December 31, 2019 5178.909 109,701 12,356 33,572 12,103 3,147 398 12.900 33:17 734 Mat Income tax rate Dividends paid per share Basic Els from tal operations 21% 51.15 51.64 349 52 141 Financial Statements and Ratio Analysis CHAPTER 3 You also have the following balance sheet information as of December 31, 2019 and 2018, respectively Annual Balance Sheets (Values in Millions) December 31, 2019 December 31, 2018 $ 6,547 $9,090 Cash 19,549 21,163 Reivables Inventories 8,068 7,904 Other current assets 1,831 1,681 Property, plant, and equipment, gross 204,960 187,519 Accumulated depreciation and depletion 110,020 97,917 Other noncurrent assets 19,413 17,891 Accounts payable 13,792 22,862 Short-term debt payable 4,093 3,703 Other current liabilities 15,290 3,549 Long-term debe payable 6,655 7,099 16,484 Other noncurrent liabilities 16,359 21,733 16,441 76,458 73,161 6.7 billion 6.8 billion Deferred income taxes Retained earnings Total common shares outstanding TO DO a. Create a spreadsheet similar to Table 3.1 to model the following: (1) A multiple-step comparative income statement for Dayton Inc. for the peri- ods ending December 31, 2019 and 2018. You must calculate the cost of goods sold for the year 2019. (2) A common-size income statement for Dayton Inc. covering the years 2019 and 2018. b. Create a spreadsheet similar to Table 3.2 to model the following: (1) A detailed, comparative balance sheet for Dayton Inc. for the years ended December 31, 2019 and 2018. (2) A common-size balance sheet for Dayton Inc. covering the years 2019 and 2018. c. Create a spreadsheet similar to Table 3.10 to perform the following analysis: (1) Create a table that reflects both 2019 and 2018 operating ratios for Dayton Inc., segmented into (a) liquidity, (b) activity, (c) debt, (d) profitability, and (e) market. Assume that the current market price for the stock is $90. (2) Compare the 2019 ratios to the 2018 ratios. Indicate whether the results "outperformed the prior year or underperformed relative to the prior year