Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please provide excel functions, thank you! all ratios needed for this and last year Provided Information The JTP Company, located in Jenkintown, PA, is a

Please provide excel functions, thank you!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
all ratios needed for this and last year image text in transcribed
Provided Information The JTP Company, located in Jenkintown, PA, is a small manufacturer and distributor of custom machined components. Because of some successful new products marketed to tool and die manufacturers, the firm has seen steady revenue growth. Expecting sales growth to continue, the company expanded operations in 2020 through significant investments in property, plant, and equipment. However, the growth has been accompanied by a precipitous drop in the company's stock price. You are a financial consultant who has been retained to analyze the company's performance. Your investigative plan involves a series of in-depth interviews with management and doing some independent research on the industry. However, before starting, you want to focus your thinking to be sure you can ask the right questions. You begin by analyzing the firm's financials over the last three years, which are presented in the supplemental datasheet. As part of your discovery process, you learn that the company sold no property, plant, or equipment during the time periods presented. Also, the company did not repay any long-term debt in 2020. The account balance of the common stock account (part of equity) did not change. And finally, the company's normal credit terms extended to its customers are net 15 Required Submission Complete the following using Microsoft Excel and Word. All quantitative analysis will be done in Excel, while all qualitative analysis will be completed in Word. You must use formulas for all computations. In Microsoft Excel: 1. Construct horizontal analysis (year-over-year growth) on the provided financial statements for 2019 and 2020. 2. Build common size balance sheets for 2018 - 2020, respectively, and common size income statements for 2018 - 2020, respectively. 3. Create Statements of Cash Flows for 2019 and 2020 using the indirect method. Also compute Free Cash Flow for each year. 4. Calculate all the financial ratios discussed in chapter 16 (use exhibit 16-6 as a guide) for 2019 and 2020. 1 EXHIBITS: SUPPLEMENTAL DATA (for JTP Company) 2 All values, except stock price, are in thousands ($000) 4 Table 1 Balance Sheets 2018 2019 2020 CD ON ON $414 $333 $362 78 93 119 398 424 446 79 196 121 2.146 2.441 4,148 $1.299 $1467 $1646 $1,816 $2,020 $3,550 $237 $242 $286 248 302 466 84 73 1329 1.247 1403 $1,816 $2.020 $3.550 6 Assets 7 Cash 8 Accounts receivable 9 Inventory 10 Other current assets 11 Gross Property, Plant, & Equipment 12 Accumulated Depreciation 13 Total assets 14 15 Liabilities and equity 16 Accounts payable 17 Accruals & other current liabilities Long-term debt 19 Total equity 20 Total liabilities and equity 21 22 23 Table 2 Income Statements 24 25 Sales 26 Cost of goods sold 27 Operating expenses: 28 Depreciation 29 Selling & Administrative Expense 30 Other Operating Expenses 31 Operating Income 32 Interest expense 33 Pre-tax Profit 34 Income Tax Expense 35 Net Income 36 2018 2019 2020 $3,796 $4.036 $4308 2.425 2548 2,786 168 981 2 337 179 1,029 90 234 167 880 21 303 1 $302 83 $219 13 $213 54 $ 159 $253 Working Capital Current Ratio Quick Ratio AIR Turnover Average Collection Period Inventory Turnover Average Sale Period Operating Cycle Total Asset Turnover Times Interest Earned Debt-to-Equity Equity Multiplier Gross Margin Net Profit Margin Return on Total Assets Return on Equity 6 6 Earnings per Share PE Ratio Dividend Payout Dividend Yield Book Value per Share Provided Information The JTP Company, located in Jenkintown, PA, is a small manufacturer and distributor of custom machined components. Because of some successful new products marketed to tool and die manufacturers, the firm has seen steady revenue growth. Expecting sales growth to continue, the company expanded operations in 2020 through significant investments in property, plant, and equipment. However, the growth has been accompanied by a precipitous drop in the company's stock price. You are a financial consultant who has been retained to analyze the company's performance. Your investigative plan involves a series of in-depth interviews with management and doing some independent research on the industry. However, before starting, you want to focus your thinking to be sure you can ask the right questions. You begin by analyzing the firm's financials over the last three years, which are presented in the supplemental datasheet. As part of your discovery process, you learn that the company sold no property, plant, or equipment during the time periods presented. Also, the company did not repay any long-term debt in 2020. The account balance of the common stock account (part of equity) did not change. And finally, the company's normal credit terms extended to its customers are net 15 Required Submission Complete the following using Microsoft Excel and Word. All quantitative analysis will be done in Excel, while all qualitative analysis will be completed in Word. You must use formulas for all computations. In Microsoft Excel: 1. Construct horizontal analysis (year-over-year growth) on the provided financial statements for 2019 and 2020. 2. Build common size balance sheets for 2018 - 2020, respectively, and common size income statements for 2018 - 2020, respectively. 3. Create Statements of Cash Flows for 2019 and 2020 using the indirect method. Also compute Free Cash Flow for each year. 4. Calculate all the financial ratios discussed in chapter 16 (use exhibit 16-6 as a guide) for 2019 and 2020. 1 EXHIBITS: SUPPLEMENTAL DATA (for JTP Company) 2 All values, except stock price, are in thousands ($000) 4 Table 1 Balance Sheets 2018 2019 2020 CD ON ON $414 $333 $362 78 93 119 398 424 446 79 196 121 2.146 2.441 4,148 $1.299 $1467 $1646 $1,816 $2,020 $3,550 $237 $242 $286 248 302 466 84 73 1329 1.247 1403 $1,816 $2.020 $3.550 6 Assets 7 Cash 8 Accounts receivable 9 Inventory 10 Other current assets 11 Gross Property, Plant, & Equipment 12 Accumulated Depreciation 13 Total assets 14 15 Liabilities and equity 16 Accounts payable 17 Accruals & other current liabilities Long-term debt 19 Total equity 20 Total liabilities and equity 21 22 23 Table 2 Income Statements 24 25 Sales 26 Cost of goods sold 27 Operating expenses: 28 Depreciation 29 Selling & Administrative Expense 30 Other Operating Expenses 31 Operating Income 32 Interest expense 33 Pre-tax Profit 34 Income Tax Expense 35 Net Income 36 2018 2019 2020 $3,796 $4.036 $4308 2.425 2548 2,786 168 981 2 337 179 1,029 90 234 167 880 21 303 1 $302 83 $219 13 $213 54 $ 159 $253 Working Capital Current Ratio Quick Ratio AIR Turnover Average Collection Period Inventory Turnover Average Sale Period Operating Cycle Total Asset Turnover Times Interest Earned Debt-to-Equity Equity Multiplier Gross Margin Net Profit Margin Return on Total Assets Return on Equity 6 6 Earnings per Share PE Ratio Dividend Payout Dividend Yield Book Value per Share

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Psychology Of Money Timeless Lessons On Wealth Greed And Happiness

Authors: Morgan Housel

1st Edition

978-0857199096

More Books

Students also viewed these Finance questions

Question

what are the effects of south african government zero budget

Answered: 1 week ago