Project: Part 2 UNIVERSIDAD ANA G. MENDEZ School of Engineering DEPARTMENT OF INDUSTRIAL AND MANAGEMENT ENGINEERING IMEN-341 Accounting & Finance for Engineers Due Date: April 26, 2022 Analysis of Financial Statements (Financial Ratios) M&G Industries Balance Sheet For December 31, 2020 and 2021 Cash Accounts receivable Inventories Total current assets Land Buildings and equipment Less: allowance for depreciation Total fixed assets Total assets Accounts Payable Short-term bank notes Total current liabilities Long-term debt Common stock Retained earnings Total debt and equity M & G Industries Income Statement For the Years Ended December 31, 2020 and 2021 2020 2021 $ 9,000 $ 500 16,000 12,500 29,000 $ 50,500 20,000 45,500 $62,000 26,000 70,000 100,000 (28,000) $ 62,000 $112.500 $10.500 17,000 $ 27,500 28.750 31,500 24,750 $112,500 (38,000) $88,000 $150,000 $ 22,000 47,000 $ 69,000 22,950 31,500 26,550 $150,000 2020 2021 Sales (all credit) Cost of goods sold Gross profit Operating expenses Fixed cash operating expenses Variable operating expenses Depreciation Total operating expenses Earnings before interest and taxes Interest expense Earnings before taxes Taxes Net income $125,000 75,000 $50,000 $ 21,000 12,500 4,500 $ 38,000 $ 12,000 3,000 39.000 4,500 $4,500 $160,000 96,000 $ 64,000 $ 21,000 16,000 10,000 $47.000 $17,000 6,100 $ 10,900 5,450 5,450