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Please use EXCEL and show individual cell work. Calculate the ratios and answer the questions below. Add more space to the yellow boxes if you
Please use EXCEL and show individual cell work.
| Calculate the ratios and answer the questions below. Add more space to the yellow boxes if you need to. | ||||||||
| Joshua & White Technologies: December 31 Balance Sheets | ||||||||
| (Thousands of Dollars) | ||||||||
| Assets | 2019 | 2018 | ||||||
| Cash and cash equivalents | $21,000 | $20,000 | ||||||
| Short-term investments | 3,759 | 3,240 | ||||||
| Accounts Receivable | 52,500 | 48,000 | ||||||
| Inventories | 84,000 | 56,000 | ||||||
| Total current assets | $161,259 | $127,240 | ||||||
| Net fixed assets | 223,097 | 200,000 | ||||||
| Total assets | $384,356 | $327,240 | ||||||
| Liabilities and equity | ||||||||
| Accounts payable | $33,600 | $32,000 | ||||||
| Accruals | 12,600 | 12,000 | ||||||
| Notes payable | 19,929 | 6,480 | ||||||
| Total current liabilities | $66,129 | $50,480 | ||||||
| Long-term debt | 67,662 | 58,320 | ||||||
| Total liabilities | $133,791 | $108,800 | ||||||
| Common stock | 178,440 | 178,440 | ||||||
| Retained Earnings | 72,125 | 40,000 | ||||||
| Total common equity | $250,565 | $218,440 | ||||||
| Total liabilities and equity | $384,356 | $327,240 | ||||||
| Joshua & White Technologies December 31 Income Statements | ||||||||
| (Thousands of Dollars) | ||||||||
| 2019 | 2018 | |||||||
| Sales | $420,000 | $400,000 | ||||||
| COGS except excluding depr. and amort. | 300,000 | 298,000 | ||||||
| Depreciation and Amortization | 19,660 | 18,000 | ||||||
| Other operating expenses | 27,600 | 22,000 | ||||||
| EBIT | $72,740 | $62,000 | ||||||
| Interest Expense | 5,740 | 4,460 | ||||||
| EBT | $67,000 | $57,540 | ||||||
| Taxes (25%) | 16,750 | 14,385 | ||||||
| Net Income | $50,250 | $34,524 | ||||||
| Common dividends | $18,125 | $17,262 | ||||||
| Addition to retained earnings | $32,125 | $17,262 | ||||||
| Other Data | 2019 | 2018 | ||||||
| Year-end Stock Price | $90.00 | $96.00 | ||||||
| # of shares (Thousands) | 4,052 | 4,000 | ||||||
| Lease payment (Thousands of Dollars) | $20,000 | $20,000 | ||||||
| Sinking fund payment (Thousands of Dollars) | $5,000 | $5,000 | ||||||
| Ratio Analysis | 2019 | 2018 | Industry Avg | |||||
| Liquidity Ratios | ||||||||
| Current Ratio | 2.58 | |||||||
| Quick Ratio | 1.53 | |||||||
| Asset Management Ratios | ||||||||
| Inventory Turnover (Total COGS/Inventories) | 7.69 | |||||||
| Days Sales Outstanding | 47.45 | |||||||
| Fixed Assets Turnover | 2.04 | |||||||
| Total Assets Turnover | 1.23 | |||||||
| Debt Management Ratios | ||||||||
| Debt Ratio (Total debt-to-assets) | 20.0% | |||||||
| Liabilities-to-assets ratio | 32.1% | |||||||
| Times-interest-earned ratio | 15.33 | |||||||
| EBITDA coverage ratio | 4.18 | |||||||
| Profitability Ratios | ||||||||
| Profit Margin | 8.86% | |||||||
| Basic Earning Power | 19.48% | |||||||
| Return on Assets | 10.93% | |||||||
| Return on Equity | 16.10% | |||||||
| Market Value Ratios | ||||||||
| Earnings per share | NA | |||||||
| Price-to-earnings ratio | 10.65 | |||||||
| Cash flow per share | NA | |||||||
| Price-to-cash flow ratio | 7.11 | |||||||
| Book Value per share | NA | |||||||
| Market-to-book ratio | 1.72 | |||||||
| a. Has Joshua & White's liquidity position improved or worsened? Explain. | ||||||||
| b. Has Joshua & White's ability to manage its assets improved or worsened? Explain. | ||||||||
| c. How has Joshua & White's profitability changed during the last year? | ||||||||
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