The following are condensed comparative financial statements of Nero Corporation for the three years ended December 31, 2019, 2020, and 2021. The following additional information is available: 1 All sales are on credit; credit terms are net 60 days after invoice date. 2 Twenty shares of common stock were outstanding in years 2019 and 2020. On April 1, 2021, an additional 30 shares of common stock were issued for $144 cash in total. The accounts receivable balance at January 1, 2019 was $19. The inventory balance at January 1, 2019 was $24. The net capital assets balance at January 1, 2019 was $91. The total assets balance at January 1, 2019 was $165. The total stockholders' equity balance at January 1, 2019 was $101. 3 4 5 6 7 8 9 Dividends of $8 were declared in 2019. No dividends were declared in 2020 and 2021. Interest has been paid on the bonds each year and is included in interest expense. After applying multiple analysis techniques, what conclusions can be drawn from the provided financial data? Current Cash Accounts receivable Inventory Prepaid expenses Nero Corporation Balance Sheet At December 31 Current Non-current Property, plant, and equipment, net Total assets Assets Accounts payable Provisions Non-current bonds payable, 4% 2021 Common stock Retained earnings Total liab, and stockholders' equity $ 24 45 72 3 144 312 $456 Liabilities and Stockholders' Equity $ 54 30 96 2020 180 240 36 $456 $-0- 45 48 3 96 180 $276 $72 24 60 156 96 24 $276 2019 $-0- 44 36 4 84 91 $175 $ 40 20 -0. 60 96 19 $175 Sales Cost of goods sold Gross profit Nero Corporation Income Statement For the Years Ended Selling and administrative Income from operations Interest expense Income before income taxes Income taxes Net income 2021 2020 $252 $144 $120 96 48 34 14 6 8 3 $5 ********** 26 20 ********** 8 2019 9 The following additional information is available: a. All sales are on credit; credit terms are net 60 days after invoice date. b. Twenty shares of common stock were outstanding in years 2019 and 2020. On April 1, 2021, an additional 30 shares of common stock were issued for $144 cash in total. c. The accounts receivable balance at January 1, 2019 was $19. d. The inventory balance at January 1, 2019 was $24. e. The net capital assets balance at January 1, 2019 was $91. f. The total assets balance at January 1, 2019 was $165. g. The total stockholders' equity balance at January 1, 2019 was $101. h. Dividends of $8 were declared in 2019. No dividends were declared in 2020 and 2021. i. Interest has been paid on the bonds each year and is included in interest expense. Required: 1. From the above information, calculate the following for each of the three years: a. Liquidity Current ratio Acid-test ratio Accounts receivable collection period Number of days of sales in inventory Revenue operating cycle b. Profitability Gross profit ratio Net profit ratio Return on total assets Return on stockholders' equity c. Leverage Debt to stockholders' equity ratio Times interest earned d. Market measures Earnings per share 2. What conclusions can be drawn? The following are condensed comparative financial statements of Nero Corporation for the three years ended December 31, 2019, 2020, and 2021. The following additional information is available: 1 All sales are on credit; credit terms are net 60 days after invoice date. 2 Twenty shares of common stock were outstanding in years 2019 and 2020. On April 1, 2021, an additional 30 shares of common stock were issued for $144 cash in total. The accounts receivable balance at January 1, 2019 was $19. The inventory balance at January 1, 2019 was $24. The net capital assets balance at January 1, 2019 was $91. The total assets balance at January 1, 2019 was $165. The total stockholders' equity balance at January 1, 2019 was $101. 3 4 5 6 7 8 9 Dividends of $8 were declared in 2019. No dividends were declared in 2020 and 2021. Interest has been paid on the bonds each year and is included in interest expense. After applying multiple analysis techniques, what conclusions can be drawn from the provided financial data? Current Cash Accounts receivable Inventory Prepaid expenses Nero Corporation Balance Sheet At December 31 Current Non-current Property, plant, and equipment, net Total assets Assets Accounts payable Provisions Non-current bonds payable, 4% 2021 Common stock Retained earnings Total liab, and stockholders' equity $ 24 45 72 3 144 312 $456 Liabilities and Stockholders' Equity $ 54 30 96 2020 180 240 36 $456 $-0- 45 48 3 96 180 $276 $72 24 60 156 96 24 $276 2019 $-0- 44 36 4 84 91 $175 $ 40 20 -0. 60 96 19 $175 Sales Cost of goods sold Gross profit Nero Corporation Income Statement For the Years Ended Selling and administrative Income from operations Interest expense Income before income taxes Income taxes Net income 2021 2020 $252 $144 $120 96 48 34 14 6 8 3 $5 ********** 26 20 ********** 8 2019 9 The following additional information is available: a. All sales are on credit; credit terms are net 60 days after invoice date. b. Twenty shares of common stock were outstanding in years 2019 and 2020. On April 1, 2021, an additional 30 shares of common stock were issued for $144 cash in total. c. The accounts receivable balance at January 1, 2019 was $19. d. The inventory balance at January 1, 2019 was $24. e. The net capital assets balance at January 1, 2019 was $91. f. The total assets balance at January 1, 2019 was $165. g. The total stockholders' equity balance at January 1, 2019 was $101. h. Dividends of $8 were declared in 2019. No dividends were declared in 2020 and 2021. i. Interest has been paid on the bonds each year and is included in interest expense. Required: 1. From the above information, calculate the following for each of the three years: a. Liquidity Current ratio Acid-test ratio Accounts receivable collection period Number of days of sales in inventory Revenue operating cycle b. Profitability Gross profit ratio Net profit ratio Return on total assets Return on stockholders' equity c. Leverage Debt to stockholders' equity ratio Times interest earned d. Market measures Earnings per share 2. What conclusions can be drawn? The following are condensed comparative financial statements of Nero Corporation for the three years ended December 31, 2019, 2020, and 2021. The following additional information is available: 1 All sales are on credit; credit terms are net 60 days after invoice date. 2 Twenty shares of common stock were outstanding in years 2019 and 2020. On April 1, 2021, an additional 30 shares of common stock were issued for $144 cash in total. The accounts receivable balance at January 1, 2019 was $19. The inventory balance at January 1, 2019 was $24. The net capital assets balance at January 1, 2019 was $91. The total assets balance at January 1, 2019 was $165. The total stockholders' equity balance at January 1, 2019 was $101. 3 4 5 6 7 8 9 Dividends of $8 were declared in 2019. No dividends were declared in 2020 and 2021. Interest has been paid on the bonds each year and is included in interest expense. After applying multiple analysis techniques, what conclusions can be drawn from the provided financial data? Current Cash Accounts receivable Inventory Prepaid expenses Nero Corporation Balance Sheet At December 31 Current Non-current Property, plant, and equipment, net Total assets Assets Accounts payable Provisions Non-current bonds payable, 4% 2021 Common stock Retained earnings Total liab, and stockholders' equity $ 24 45 72 3 144 312 $456 Liabilities and Stockholders' Equity $ 54 30 96 2020 180 240 36 $456 $-0- 45 48 3 96 180 $276 $72 24 60 156 96 24 $276 2019 $-0- 44 36 4 84 91 $175 $ 40 20 -0. 60 96 19 $175 Sales Cost of goods sold Gross profit Nero Corporation Income Statement For the Years Ended Selling and administrative Income from operations Interest expense Income before income taxes Income taxes Net income 2021 2020 $252 $144 $120 96 48 34 14 6 8 3 $5 ********** 26 20 ********** 8 2019 9 The following additional information is available: a. All sales are on credit; credit terms are net 60 days after invoice date. b. Twenty shares of common stock were outstanding in years 2019 and 2020. On April 1, 2021, an additional 30 shares of common stock were issued for $144 cash in total. c. The accounts receivable balance at January 1, 2019 was $19. d. The inventory balance at January 1, 2019 was $24. e. The net capital assets balance at January 1, 2019 was $91. f. The total assets balance at January 1, 2019 was $165. g. The total stockholders' equity balance at January 1, 2019 was $101. h. Dividends of $8 were declared in 2019. No dividends were declared in 2020 and 2021. i. Interest has been paid on the bonds each year and is included in interest expense. Required: 1. From the above information, calculate the following for each of the three years: a. Liquidity Current ratio Acid-test ratio Accounts receivable collection period Number of days of sales in inventory Revenue operating cycle b. Profitability Gross profit ratio Net profit ratio Return on total assets Return on stockholders' equity c. Leverage Debt to stockholders' equity ratio Times interest earned d. Market measures Earnings per share 2. What conclusions can be drawn? The following are condensed comparative financial statements of Nero Corporation for the three years ended December 31, 2019, 2020, and 2021. The following additional information is available: 1 All sales are on credit; credit terms are net 60 days after invoice date. 2 Twenty shares of common stock were outstanding in years 2019 and 2020. On April 1, 2021, an additional 30 shares of common stock were issued for $144 cash in total. The accounts receivable balance at January 1, 2019 was $19. The inventory balance at January 1, 2019 was $24. The net capital assets balance at January 1, 2019 was $91. The total assets balance at January 1, 2019 was $165. The total stockholders' equity balance at January 1, 2019 was $101. 3 4 5 6 7 8 9 Dividends of $8 were declared in 2019. No dividends were declared in 2020 and 2021. Interest has been paid on the bonds each year and is included in interest expense. After applying multiple analysis techniques, what conclusions can be drawn from the provided financial data? Current Cash Accounts receivable Inventory Prepaid expenses Nero Corporation Balance Sheet At December 31 Current Non-current Property, plant, and equipment, net Total assets Assets Accounts payable Provisions Non-current bonds payable, 4% 2021 Common stock Retained earnings Total liab, and stockholders' equity $ 24 45 72 3 144 312 $456 Liabilities and Stockholders' Equity $ 54 30 96 2020 180 240 36 $456 $-0- 45 48 3 96 180 $276 $72 24 60 156 96 24 $276 2019 $-0- 44 36 4 84 91 $175 $ 40 20 -0. 60 96 19 $175 Sales Cost of goods sold Gross profit Nero Corporation Income Statement For the Years Ended Selling and administrative Income from operations Interest expense Income before income taxes Income taxes Net income 2021 2020 $252 $144 $120 96 48 34 14 6 8 3 $5 ********** 26 20 ********** 8 2019 9 The following additional information is available: a. All sales are on credit; credit terms are net 60 days after invoice date. b. Twenty shares of common stock were outstanding in years 2019 and 2020. On April 1, 2021, an additional 30 shares of common stock were issued for $144 cash in total. c. The accounts receivable balance at January 1, 2019 was $19. d. The inventory balance at January 1, 2019 was $24. e. The net capital assets balance at January 1, 2019 was $91. f. The total assets balance at January 1, 2019 was $165. g. The total stockholders' equity balance at January 1, 2019 was $101. h. Dividends of $8 were declared in 2019. No dividends were declared in 2020 and 2021. i. Interest has been paid on the bonds each year and is included in interest expense. Required: 1. From the above information, calculate the following for each of the three years: a. Liquidity Current ratio Acid-test ratio Accounts receivable collection period Number of days of sales in inventory Revenue operating cycle b. Profitability Gross profit ratio Net profit ratio Return on total assets Return on stockholders' equity c. Leverage Debt to stockholders' equity ratio Times interest earned d. Market measures Earnings per share 2. What conclusions can be drawn?