Robust Robots, Inc.
Comparative Balance Sheet- Horizontal Analysis
December 31, 2019 and 2018
Assets		2019		2018		Differents	Percentage
Current Assets:
	Cash	$65,000		$80,000		$ (15,000.00)	-18.75%
	Accounts Receivable, net	$150,000		$100,000		$ 50,000.00	50.00%
	Merchandise Inventory	$135,000		$70,000		$ 65,000.00	92.86%
	Supplies	$9,700		$500		$ 9,200.00	1840.00%
	Prepaid Insurance	$30,000		$10,000		$ 20,000.00	200.00%
	Total Current Assets	$389,700		$260,500		$ 129,200.00	49.60%
Property, Plant, and Equipment:
	Equipment	$500,000		$240,000		$ 260,000.00	108.33%
	Less: Accumulated Depreciation - Equipment	($80,000)		($90,000)		$ 10,000.00	-11.11%
	Total Property, Plant, and Equipment	$420,000		$150,000		$ 270,000.00	180.00%
Total Assets		$809,700		$410,500		$ 399,200.00	97.25%
Liabilities and Stockholders Equity		2019		2018
Current Liabilities:
	Accounts Payable	$150,000		$40,000		$ 110,000.00	275.00%
	Unearned Revenue	$40,000		$50,000		$ (10,000.00)	-20.00%
	Salaries Payable	$40,000		$30,000		$ 10,000.00	33.33%
	Federal Income Taxes Payable	$10,000		$10,000		$ -	0.00%
	Total Current Liabilities	$240,000		$130,000		$ 110,000.00	84.62%
Long Term Liabilities
	Note Payable	$130,000		-		$ 130,000.00	0.00%
Total Long-Term Liabilities		$130,000		-		$ 130,000.00	0.00%
Total Liabilities		$370,000		$130,000		$ 240,000.00	184.60%
Stockholders Equity:
	Common Stock, $10 Par	$170,000		$100,000		$ 70,000.00	70.00%
	Paid-In Capital in Excess of Par	$43,700		$ -		$ 43,700.00
	Retained Earnings	$226,000		$180,500		$ 45,500.00	25.20%
	Total Stockholders Equity	$439,700		$280,500		$ 159,200.00	56.80%
Total Liabilities and Stockholders Equity		$809,700		$410,500		$ 399,200.00	97.20%

Robust Robots, Inc.
Comparative Statement of Income -Vertical analysis
For the Years Ended December 31, 2019 and 2018
							2019	%	2018	%
Sales							$700,000	100%	$600,000	100%
Cost of Goods Sold							$524,300	74.90%	$420,000	-70.00%
Gross Margin							$175,700	25.10%	$180,000	30%
Operating Expenses:
	Salaries and Wages Expense						$47,290	6.76%	$100,000	-16.67%
	Rent Expense						$20,256	2.89%	$20,000	-3.33%
	Depreciation Expense						$20,000	2.86%	$10,000	-1.67%
		Total Operating Expenses					$87,546	12.51%	$130,000	21.67%
Income from Operations							$88,154	12.59%	$50,000	8.33%
	Loss on Sale of Equipment						($5,213)	-0.74%	-
	Interest Expense						($3,656)	-0.52%	($5,000)	-0.83%
		Increase (Decrease) in Operating Income					($8,869)	-1.27%	($5,000)	-0.83%
Income before Taxes							$79,285	11.33%	$45,000	7.50%
Federal Income Taxes							$23,786	-3.40%	$13,500	-2.25%
Net Income							$55,500	7.93%	$31,500	5.25%

Working Capital both years	$149,700
Current Ratio both years	1.62
Quick ratio both years	1.06
Account Receivable Turnovers	5.60
Number of Days Sales in Receivables	65
Inventory Turnover	5.12
Number of Days Sales in Inventory	71
	2019	2018
Ratio of Liabilities to Stck Equidy	0.84	0.46
Return on Total Assets 2019	$0.08
Return on StockHolders Equidy	$0.15
	2019	2018
Earnings Per Share	$0.33

Acting as an accounting advisor to the firm, prepare a memo in which you analyze the financial statements you prepared and along with the ratios that you have calculated prepare an analysis of the companys financial position. Identify two weaknesses in the company. Make two recommendations to improve the companys financial position. Be specific in each of the recommendations and use the ratios to support your analysis.