Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Start with the partial model in the file Cho7 P15 Build a Model.xlsx. Joshua & White (J&W) Technology's financial statements are also shown here. Joshua

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Start with the partial model in the file Cho7 P15 Build a Model.xlsx. Joshua \& White (J\&W) Technology's financial statements are also shown here. Joshua \& White Technology: December 31 Balance Sheets (Thousands of Dollars) Joshua \&. White Technology: December 31 Balance Sheets rThnueande ne nallamal Joshua \& White Technology: Income Statements for Year Ending on December 31 (Thousands of Dollars) The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Round your answers to two decimal places. If your answer is zero, enter "0". a. Has J\&W's liquidity position improved or worsened? Explain. The firm's current ratio has (1), and the quick ratio has (3), indicating that J8W's liquidity position has b. Has J\&W's ability to manage its assets improved or worsened? Explain. Assume that there are 365 days in a year. The firm's inventory turnover has (3), the DSO has (), the fixed assets turnover has . and the total assets turnover has . indicating that J8W's ability to manage its assets has c. How has J8W's profitability changed during the last year? c. How has J8W's profitability changed during the last year? The firm's profit margin has (1), the basic earning power has (1), the return on assets has (1), and the return on equity has , Indicating that J\&W's profitability has d. Perform an extended DuPont analysis for 32W for 2020 and 2021 , What do these results tell you? The ROE has because the profit margin has , and the equity multiplier has despite the fact that the total asset tumover ratio has e. Perform a common size analysis. Joshua 8 White Technoloav: December 31 Common Sire Aalanra Shaate Joshua \& White Technology: Common Size Income Statements for Year Ending on December 31 What has happened to the composition (that is, percentage in each category) of assets and liabilities? Inventories now make up a proportion of current assets and accounts payable make up a proportion of current liabilities: f. Perform a percentage change analysis. Joshua \& White Technology: December 31 Percent Change Balance Sheet Joshua \& White Technology: December 31 Percent Change Balance Sheet Joshua & White Technology: Percent Change Income Statement for Year Ending on December 31 What does this tell you about the change in profitability and asset utilization? The profitability has However, the extreme growth in should be of great concern to J8W's managers. Start with the partial model in the file Cho7 P15 Build a Model.xlsx. Joshua \& White (J\&W) Technology's financial statements are also shown here. Joshua \& White Technology: December 31 Balance Sheets (Thousands of Dollars) Joshua \&. White Technology: December 31 Balance Sheets rThnueande ne nallamal Joshua \& White Technology: Income Statements for Year Ending on December 31 (Thousands of Dollars) The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Round your answers to two decimal places. If your answer is zero, enter "0". a. Has J\&W's liquidity position improved or worsened? Explain. The firm's current ratio has (1), and the quick ratio has (3), indicating that J8W's liquidity position has b. Has J\&W's ability to manage its assets improved or worsened? Explain. Assume that there are 365 days in a year. The firm's inventory turnover has (3), the DSO has (), the fixed assets turnover has . and the total assets turnover has . indicating that J8W's ability to manage its assets has c. How has J8W's profitability changed during the last year? c. How has J8W's profitability changed during the last year? The firm's profit margin has (1), the basic earning power has (1), the return on assets has (1), and the return on equity has , Indicating that J\&W's profitability has d. Perform an extended DuPont analysis for 32W for 2020 and 2021 , What do these results tell you? The ROE has because the profit margin has , and the equity multiplier has despite the fact that the total asset tumover ratio has e. Perform a common size analysis. Joshua 8 White Technoloav: December 31 Common Sire Aalanra Shaate Joshua \& White Technology: Common Size Income Statements for Year Ending on December 31 What has happened to the composition (that is, percentage in each category) of assets and liabilities? Inventories now make up a proportion of current assets and accounts payable make up a proportion of current liabilities: f. Perform a percentage change analysis. Joshua \& White Technology: December 31 Percent Change Balance Sheet Joshua \& White Technology: December 31 Percent Change Balance Sheet Joshua & White Technology: Percent Change Income Statement for Year Ending on December 31 What does this tell you about the change in profitability and asset utilization? The profitability has However, the extreme growth in should be of great concern to J8W's managers

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Management Accounting

Authors: Tom Groot, Frank Selto

1st Edition

0273730185, 978-0273730187

More Books

Students also viewed these Accounting questions

Question

Find the median for the set of measurements 2, 9, 11, 5, 6, 27.

Answered: 1 week ago