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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

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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. Build common size (vertical) balance sheets for 2018, 2019 and 2020, respectively, and common size income statements for 2018, 2019, and 2020, respectively. 2. Construct horizontal analysis (year-over-year growth) on the provided financial statements for years 2019 and 2020. 3. Calculate all the financial ratios discussed in chapter 16 (use exhibit 16-6 as a guide) for 2019 and 2020. 4. Create Statements of Cash Flows for 2019 and 2020 using the indirect method. 5. Compute Free Cash Flow for each year for 2019 and 2020. In Microsoft Word ( 1 page-length response): 1. Based on all of your financial statement analysis, what do you think is causing the decline in the company's stock price? In other words, why might the market not be reacting favorably topTP's growth? 2. In light of your response above, what two or more) specific actionable items could the company do to improve its situation? Be specific in your response, justifying your statements

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