The Following are the comparative financial statements of C&C Sports for the year 2019 and 2018, along with Industry ratios for 2019, on the basis of these information and after calculating relevant ratios, comment on the liquidity, solvency, efficiency, profitability, valuation and financial flexibility of the company in comparison with Industry.

C& C Sports

Comparative Balance Sheet

Dec-31,2019

Dec-31,2018

Cash

7,752

22,114

Marketable Securities

23,713

83,429

Account Receivable net

600,000

500,000

Inventory

640,372

547,109

Prepaid

24,388

8,164

Property plant and equipment (Net)

574,562

636,459

Total Assets

1,870,787

1,797,275

Account Payables

441,602

445,014

Other Accrued Expenses

86,749

115,626

Short term Debt (interest bearing)

145,000

130,000

Bonds

280,000

300,000

Total Liabilities

953,351

990,640

Common Stock (21,000 shares outstanding )

210,000

210,000

Retained Earnings

707,436

596,635

Total Liabilities and Equity

1,870,787

1,797,275

C& C Sports

Comparative Income Statements

For 2019

For,2018

Sales Revenue

5,237,000

4,654,000

Cost of goods sold

3,876,432

3,464,440

Gross Margin

1,360,568

1,189,560

Selling & Admin Exp

1,160,566

1,067,721

Operating Income

200,002

121,839

Interest Expense

41,715

43,210

Income before Tax

158,287

78,629

Income tax Expense

47,486

23,589

Net Income

110,801

55,040

Dividend declared and paid per share

0.5

0.25

Market price per share

18

8

3/4

C& C Sports

Comparative Cash FlowStatements

2019

2018

Cash Flow From Operating Activities

Net Income

110,801

55,040

Adjustments

Depreciation

67,789

66,912

Changes in Operating Assets &Liabilities

Account Receivable

(40,284)

(31,466)

Inventories

(93,263)

(98,510)

Prepaid expenses

(22,116)

(14,507)

Account Payables

3,412

9,651

Accrued liabilities

(28,877)

(8,318)

Net cash provided by operating activities

(9,362)

(21,918)

Net Cash provided by Investing activities

-

-

Cash flow by Financing activities

Short term borrowings

15,000

10,000

Repayment of long-term debt

(9,500)

(14,750)

Payment of dividends

(10,500)

(5,250)

Net Cash provided by financing activities

(5,000)

(10,000)

Increase /(decrease) in cash

(14,362)

(31,198)

Cash at beginning of period

22,114

53,312

Cash at end of period

7,752

22,114

Industry Ratios for 2019

Current Ratio

1.5

Quick Ratio

0.75

Account Receivable turnover ratio

6 times

Average collection period

60 days

Inventory turnover ratio

5 times

Average days to sell industry

45 days

Debt Ratio

70%

Debt to equity ratio

1

Times interest earned ratio

3.5 times

Gross margin ratio

35%

ROA

8.50%

ROE

13.75%

EPS

10

P/E ratio

4 times

Dividend pay-out ratio

0.75

Cash inflow from operations as a % of total inflow

20%

Free cash Flow

(25,000)