Question
Suppose you are interested in evaluating ABC company's financial performance during 2019 and 2020. Use the information provided on the excel sheet to answer the
Suppose you are interested in evaluating ABC company's financial performance during 2019 and 2020. Use the information provided on the excel sheet to answer the following questions.
- 1. Prepare the companys Balance sheet and Income Statement during 2019 and 2020. (3 marks)
- 2. Prepare the companys cash flow statement for the year 2020. (2 marks)
- 3. Calculate the financial ratios for the company in 2019 and 2020. (2 marks)
Note: Purchases were %70 of the cost of goods sold in both years.
Financial Ratios | 2019 | 2020 |
Current ratio |
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Quick ratio |
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Inventory turnover |
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Average age of inventory |
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Average collection period |
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Average payment period |
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Asset turnover |
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Debt ratio |
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Debt to equity ratio |
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Times interest earned ratio |
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Gross profit margin |
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Operating profit margin |
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Net profit margin |
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ROA |
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ROE |
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- 4. Analyze the companys overall financial situation from a time series viewpoint. (2 marks)
- 5. Compile the Pro forma Income statement for the year 2020 using percent of sales method. (1 mark)
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