REQUIREMENTS: In Excel

1. You will be assigned a company when you open the quiz. Analyze your assigned Financial Statements using ratio analysis AND comparative analysis.
2. Based on your review of the financial statements, suggest a key insight about the financial health of the company. Speculate on the likely reaction to the financial statements from various stakeholder groups (employee, investors, shareholders). Provide support for your rationale.
3. Identify the current industry trend that has the most significant impact on your assigned organization's financial performance. Indicate the trend's impact on the financial performance of the organization. As the CFO, suggest at least one (1) way that you might minimize or maximize the impact of the trend on the organization.
4. As the CFO, suggest one (1) key strategy that you might use in order to improve the financial performance of the organization. Recommend an approach to implement the suggested strategy. Provide LEGITIMATE support for your recommendation.

Weller Corporation Comparative Balance Sheet (dollars in thousands) This Year Last Year Assets Current assets: Cash $1,280 $1,560 Accounts receivable, net 12,300 9, 100 Inventory 9,700 8,200 Prepaid expenses 1,800 2, 100 Total current assets 25,080 20,960 Property and equipment: Land 6,000 6,000 Buildings and equipment, net 19,200 19,000 Total property and equipment 25,200 25,000 Total assets $50,280 $45,960 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $9,500 $8,300 Accrued payables 600 700 Notes payable, short term 300 300 Total current liabilities 10,400 9,300 Long-term liabilities: Bonds payable 5,000 5,000 Total liabilities 15,400 14,300 Stockholders' equity: Preferred stock 2,000 2,000 Common stock 800 800 Additional paid-in capital 2,200 2,200 Total paid-in capital 5,000 5,000 Retained earnings 29,880 26,660 Total stockholders' equity 34,880 31,660 Total liabilities and stockholders' equity $50,280 $45,960Weller Corporation Comparative Income Statement and Reconciliation (dollars in thousands) This Year Last Year Sales $79,000 $74,000 Cost of goods sold 52,000 48,000 Gross margin 27,000 26,000 Selling and administrative expenses: Selling expenses 8,500 8,000 Administrative expenses 12,000 11,000 Total selling and administrative expenses 20,500 19,000 Net operating income 6,500 7,000 Interest expense 600 600 Net income before taxes 5,900 6,400 Income taxes 2,360 2,560 Net income 3,540 3,840 Dividends to preferred stockholders 120 400 Net income remaining for common stockholders 3,420 3,440 Dividends to common stockholders 200 200 Net income added to retained earnings 3,220 3,240 Retained earnings, beginning of year 26,660 23,420 Retained earnings, end of year $29,880 $26,660