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Use the following financial statements for questions 1 through 4:
Manutech Ltd
Income Statement
Year Ended December 31
		2019		2018
Net sales		$ 1,470,000		$ 1,200,000
Variable Costs		882,000		720,000
Contribution Margin		$ 588,000		$ 480,000
Fixed Costs		177,000		114,000
Operating income (EBIT)		$ 411,000		$ 366,000
Interest expense		56,200		53,600
Earnings before taxes (EBT)		$ 354,800		$ 312,400
Income tax expense		106,440		93,720
Earnings after taxes (EAT)		$ 248,360		$ 218,680
Manutech Ltd
Statement of Financial Position
Year Ended December 31
		2019		2018
Assets
Current Assets
	Cash	$ 8,360		$ 79,500
	Accounts Receivable	150,000		105,000
	Merchandise Inventory	112,000		90,000
Total Current Assets		$ 270,360		$ 274,500
Property, Plant and Equipment		1,555,000		1,255,000
Accumulated Depreciation		(455,000)		(290,000)
	Property, Plant and Equiment (net)	$ 1,100,000		$ 965,000
Intangible Assets		120,000		120,000
Total Assets		$ 1,490,360		$ 1,359,500
Liabilities & Shareholder's Equity
Current Liabilities
	Accounts Payable	$ 65,000		$ 72,500
	Accrued Liabilities	15,000		20,000
	Bank Loan	85,000		-
Total Current Liabilities		$ 165,000		$ 92,500
Mortage Payable		650,000		670,000
Total Liaibilities		$ 815,000		$ 762,500
Shareholder's Equity
	Common Shares (10,000 issued)	100,000		100,000
	Retained Earnings	575,360		497,000
Total Shareholder's Equity		$ 675,360		$ 597,000
Total Liab & Shareholder's Equity		$ 1,490,360		$ 1,359,500

Manutech Ltd had a good year in 2019. Sales were up significantly and are expected continue to grow in 2020. The company has hired you as their new financial analyst and they want you to finish creating the year-end reporting package for the owner.

Specifically, you need to complete the table of ratios your predecessor started and comment on how the company is doing compared to industry averages. You also need to create the Statement of Cash Flows for 2019.

Finally, theyre a little concerned about the impact their high rate of growth is having on the financial stability of the company. They ask you to compare company results to industry results using the three components of DuPont analysis.

Complete the following table of ratios for the 2019 results of Manutech Ltd. To complete the table, you will need the following information:

• All sales are on credit.
• The income statement is formatted using the Contribution Margin approach. For those calculations that need it, the cost of goods sold is $794,000.
• The company has traditionally ignored Intangible Assets in the Capital Asset Turnover calculation. (Use only PP&E for that calculation.)

Enter all numbers to three (3) decimal places (this will ensure proper marking by Connect). Be sure to indicate the correct label and how the company is doing against the industry measure for ALL ratios, not just the ones that you calculate.

	Calculation for	Choose the	Industry	Better
Ratio Name	Manutech Ltd	correct label	Measure	or worse?
Profit margin	16.895	(Click to select) Percent days times	15.100	(Click to select) Better Worse
Return on assets		(Click to select) Percent days times	12.100	(Click to select) Better Worse
Return on equity		(Click to select) Percent days times	37.500	(Click to select) Better Worse
Receivables turnover		(Click to select) Percent days times	8.600	(Click to select) Better Worse
Average collection period	37.245	(Click to select) Percent days times	42.400	(Click to select) Better Worse
Inventory turnover		(Click to select) Percent days times	9.100	(Click to select) Better Worse
Accounts payable turnover	12.215	(Click to select) Percent days times	8.500	(Click to select) Better Worse
Accounts payable period		(Click to select) Percent days times	42.900	(Click to select) Better Worse
Capital asset turnover		(Click to select) Percent days times	2.400	(Click to select) Better Worse
Total asset turnover	0.986	(Click to select) Percent days times	0.800	(Click to select) Better Worse
Current ratio	1.639	(Click to select) Percent days times	2.000	(Click to select) Better Worse
Quick ratio		(Click to select) Percent days times	1.500	(Click to select) Better Worse
Debt to Total Assets	0.547	(Click to select) Percent days times	0.410	(Click to select) Better Worse
Times interest earned		(Click to select) Percent days times	4.521	(Click to select) Better Worse