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Please show your work. Liquidity Performance Analysis 1. Do a Solvency Analysis. Include trends in Current Ratio (CR), Quick Ratios (QR), Net Working Capital (NWC),

Please show your work.

Liquidity Performance Analysis

1. Do a Solvency Analysis.

Include trends in Current Ratio (CR), Quick Ratios (QR), Net Working Capital (NWC), and Working Capital (WC).

2. Do a Z-score for the current year.

Discuss what trends in the ratios over each of the 2 years reveals about the firm's solvency risk over time.

Analyze the trends in the debt ratios.

Income Statement (in thousands) 2017 2016
Total Revenue 543,660 282,354
Cost of Revenue 448,467 246,109
Gross Profit 95,193 36,245
Selling & Administrative Exp. 41,515 37,652
Depreciaiton Expense 66,221 64,343
Total Operating Expense 107,736 101,995
Operating Income or Loss (12,543) (65,750)
Interest & other expenses 60,126 31,447
Earnings before Tax (72,669) (97,197)
Tax (4,987) (26,286)
Net Income (67,682) (70,911)
Dividends Paid - 2,438
Addition to Ret. Earnings (67,682) (73,349)

Balance Sheet 2017 2016
Cash & Equivalents 17,513 4,074
Net Accounts Receivables 99,573 62,005
Inventory 22,230 15,169
Other Current Assets 7,921 9,466
Total Current Assets 147,237 90,714
Net Property, Plant & Equip. 259,039 273,210
Goodwill & Intangible Assets 157,301 201,430
Other Assets 15,282 10,740
Total Assets 578,859 576,094
Current Liabilities
Accounts Payable 29,643 18,823
Short-term Debt 241,509 244,534
Other Current Liabilities 15,268 12,417
Total Current Liabilities 286,420 275,774
Long-term Debt 5,081 12,134
Total Liabilities 291,501 287,908
Equity
Retained Earnings (94,081) (26,399)
Common Stock 381,439 314,585
Total Equity 287,358 288,186
Total Liabs. & Equity 578,859 576,094

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