Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please use the financial statements for the following three questions: a. Calculate JWs CCE, Cash Ratio, DCH, and NLB b. Interpret the 2-year trend in
Please use the financial statements for the following three questions:
a. Calculate JWs CCE, Cash Ratio, DCH, and NLB
b. Interpret the 2-year trend in the measures.
c. How would you describe JWs liquidity position?
2020 | 2019 | |
Sales | $5,700 | $5,150 |
CGS | ($4,560) | ($4,000) |
Gross Profit | $1,140 | $1,150 |
Operating Expenses | ($500) | ($420) |
Depreciation | ($27) | ($26) |
EBIT | $613 | $704 |
Interest Expense | ($35) | ($30) |
EBT | $578 | $674 |
Taxes | ($231.20) | ($145.60) |
NI | $346.80 | $528.40 |
Dividends | $- | $- |
RE | $346.80 | $528.40 |
JW, Inc.: Balance Sheet | ||
2020 | 2019 | |
Cash and Equivalents | $614.80 | $120 |
Accounts Receivable | $500 | $510 |
Inventory | $300 | $340 |
Total Current Assets | $1,414.80 | $970 |
Fixed Assets | $660 | $800 |
Accumulated Depreciation | ($227) | ($200) |
Net Fixed Assets | $433 | $600 |
Total Assets | $1,847.80 | $1,570 |
Accounts Payable | $320 | $300 |
Short-Term Notes Payable | $40 | $60 |
Accurals | $11 | $10 |
Total Current Liabilities | $371 | $370 |
Long-Term Debt | $680 | $750 |
Total Liabilities | $1,051 | $1,120 |
Common Stock | $120 | $120 |
Retained Earnings | $676.80 | $330 |
Total Shareholders' Equity | $796.80 | $450 |
Liabilities and Shareholders' Equity | $1,847.80 | $1,570 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started