QUESTION: Use JW Inc.s financial statements to calculate the following:

1a. The current ratio, quick ratio, NWC , and WCR . Discuss the observed 2-year trend.

1b. The CCC and its components. Discuss the observed 2-year trend.

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JW, Inc.: income Statement

2016 2015

Sales $ 5,700.00 $ 5,050.00

COGS ($ 4,560.00) ($ 4,040.00)

Gross Profit $ 1,140.00 $ 1,010.00

Operating Expenses ($ 500.00) ($ 420.00)

Depreciation ($ 27.00) ($ 26.00)

EBIT $ 613.00 $ 394.00

Interest Expense ($ 35.00) ($ 30.00)

EBT $ 578.00 $ 364.00

Taxes ($ 231.20) ($ 145.60)

NI $ 346.80 $ 218.40

Dividends $ - $ -

RE $ 346.80 $ 218.40

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JW, inc.: Balance Sheet

2016 2015

Cash and Equivalents $ 714.80 $ 120.00

Accounts Receivable $ 500.00 $ 500.00

Inventory $ 300.00 $ 340.00

Total Current Assets $ 1,514.80 $ 960.00

Fixed Assets $ 660.00 $ 800.00

Accumulated Depreciation ( $ 227.00) ( $ 200.00)

Net Fixed Assets $ 433.00 $ 600.00

Total Assets $ 1,947.80 $ 1,560.00

Accounts Payable $ 320.00 $ 300.00

Short-Term Notes Payable $ 40.00 $ 50.00

Accruals $ 11.00 $ 10.00

Total Current Liabilities $ 371.00 $ 360.00

Long-Term Debt $ 780.00 $ 750.00

Total Liabilities $ 1,151.00 $ 1,110.00

Common Stock $ 120.00 $ 120.00

Retained Earnings $ 676.80 $ 330.00

Total Shareholders Equity $ 796.80 $ 1,560.00

Liabilities and Shareholders Equity $ 1,947.80 $ 450.00

7. Use JW Inc's nancial statements to calculate the following: a. The current ratio, quick ratio, NWC, and WCR. Discuss the observed 2-year trend. b. The CCC and its components. Discuss the observed 2-year trend JW, Inc.: ncome Statement s 70000 5,050.00 4,040.00 1.140.00 s 1.010.00 Gross Profit IS 42000) Operating Expenses 26.00 5613 394.00 30.00) 364.00 23120l 5346 80 218.40 DNvidend 5346 80 218.40 JW, Inc.: Balance Sheet $714.80 Cash and Equrvalents 120.00 Accounts Race habla 50000 34000 s 51430 596000 Fkod Assets B0000 Accumulated Depreclaton 22700M 200000 Not Flood Assets 43300 60000 1,947.80 1.56000 $32000 Accounts Payable 30000 short Term Notes Payable 5000 1000 36000 abllitles 371.00 Long-Term Debt 75000 ,15100 Total Llabilltles 12000 Retained Earnings $67580 33000 sooo Total shareholders' Equity 1.94780 s 1156000 abilities and shareholders' Equity