THE BALANCE SHEET

Locate the companys balance sheet. Balance sheet date: _____Feb. 01, 2020__________

The accounting equation is Assets = Liabilities + Stockholders Equity. Replacing the words in the accounting equation with dollar amounts, give the companys accounting equation at the end of the current and prior years.

Assets = Liabilities + Equity

	Assets	=	Liabilities	+	Equity
Year 1 (2020)	42,779		30,946		11,833
Year 2 (2019)	41,290		29,993		11,297

THE INCOME STATEMENT

Locate the companys income statement.

What is the period covered by the income statement?_______12 moths____________

Calculate the companys net Profit/(Loss) for the Years 1 and 2

	Year 1 (2020)	Year 2 (2019)
Net Revenue	$ 78,112	$ 75,356
Cost of Goods Sold	$ 54,864	$ 53,299
Gross Profit	$ 4,658	$ 4,110
Operating Expenses	$ 16,233	$ 15,723
Net Profit	$ 3,281	$ 2,937

VII. Horizontal Analysis: Please select two (2) Income Statement and two (2) Balance Sheet accounts from the most recent and prior year financial. In the accompanied Excel spreadsheet please calculate the $ and % changes, then in your own word explain the changes. Your answer should include a comparison of the current and prior years analysis.

VIII. Ratio Analysis. In the accompanied Excel spreadsheet please calculate and interpret the selected ratio analysis. Your answer should include a comparison of the current and prior years analysis.

Ratio Temple: Excel spreadsheet

2019

1. Profit Margin Formula Profit Margin = Net Income/Net Revenues ___________ Net Income ___________ Net Revenue ___________

Explanation: 2. Asset Turnover Formula Asset turnover = Net Revenues/Average total assets ________ __________ Net Revenue _________ Average Total Assets __________ Explanation: 3. Return on Assets Formula Return on Assets = Net Income/Average Total assets __________ Net Income _________ Average Total Assets __________ Explanation:

4. Inventory Turnover Formula Inventory Turnover = Cost Of Goods Sold/Average Inventory Times_____________ COGS _______________ Days ______________ Average Inventory _____________ Explanation:

Please I need help with Part Vll and Vlll. The the two balance sheet and income statement is already given (2019-2020) and I need help with the Ratio Temple: Excel spreadsheet