STAR Corporation, a manufacturer for a range of lighting products, supplies financial information for both years 2019 and 2020 (all the numbers, except for share data, are shown in thousands of dollars). Estimated cost of capital for all its financing is 10,5%.

STAR Corporation Income statements ($ in thousands)

2019 2020

Sales	$5130	$4,850
Cost of goods sold	(3,330)	(3,240)
Gross profits Operating expenses:	$1,800	$1,620
Selling and G&A expenses	$(738)	$(702)
Depreciation expenses	(306)	(450)
Total operating expenses	$(1,044)	$(1,152)
Operating profits	$756	$468
Interest expense	(180)	(248)
Earnings before taxes	$576	$221
Income taxes	(207)	(59)
Net Income	$369	$162

STAR Corporation Balance Sheets ($ in thousands)

ASSETS	2019	2020
Cash	$270	$446
Accounts receivable	630	824
Inventories	540	702
Other current assets	113	144
Total current assets	$1,553	$2,115
Gross fixed assets	$4,185	$4,455
Accumulated depreciation	(1,530)	(1,980)
Net fixed assets	$2,655	$2,475
Total assets	$4,208	$4,590
LIABILITIES (DEBT) AND EQUITY
Accounts payable	$360	$576
Short-term notes payable	225	270
Total current liabilities	$585	$846
Long-term debt	1,125	1,193
Total liabilities	$1,710	$2,039
Common equity: Common stock (par & paid in capital)	$990	$990
Retained earnings	1,508	1,562
Total common equity	$2,498	$2,552
Total liabilities and equity	$4,208	$4,590

STAR Corporation Additional information: Number of common shares outstanding:	135	135
Dividends paid to stockholders	$108	$108
Market price per share	$32,40	$16,20

Based on the topics learnt in class prepare a financial analysis of STAR Corporation and its financial performance, comparing the firms performance between 2 years.

For your analysis and evaluation, please consider the following: computation of applicable financial ratios, common sized income statements and balance sheets including changes in absolute amounts & relative figures, price/earnings and market/book ratios, EVA. All percentages should be rounded to the second decimal place.

Interpret your results briefly.