The information below is from the comparative financial statements of a fictitious company, Haley Enterprises, a company that designs and manufactures clothing for accounting professors. Note: all numbers in the table below represent thousands of dollars.

	2021	2020	2019
Cash and cash equivalents	150	250	300
Current assets	1,000	900	1,100
Current liabilities	1,100	900	700
Cash flows from operating activities	(100)	(50)	25
Total liabilities	1,700	1,600	1,400
Total assets	2,000	2,100	2,200
Total equity
Sales revenue	2,200	2,700	3,000
Net income (loss)	(150)	(75)	50
Property, plant, & equipment (PPE)	1,000	1,000	1,000
Accumulated depreciation on PPE	900	850	800
Current ratio
Debt-to-assets

Required:

In whatever career you pursue, and likely even in your hobbies and civic life, you will come across situations where important decisions need to be made, and some of those decisions will be impacted by financial considerations. The concepts, language, and skills you learned in this course can help you to understand the financial aspects of such decisions. This question is designed to help you practice exactly this kind of thinking.

Show your computations in providing your answers below if you wish to have the possibility of partial credit.

1. What is the amount of total equity for Haley Enterprises? (Fill in the blanks in the table above.)

2. What is Haleys current ratio in each of the three years 2019-2021? (Fill in the blanks in the table above.)

3. What is Haleys debt-to-assets ratio in each of the three years 2019-2021? (Fill in the blanks in the table above.)

4. What are the trends for Haleys' in the current ratio? In the debt to assets ratio? In income? In cash flows from operating activities? Briefly characterize the financial situation that Haley appears to be facing based on these data.

5. Haley is considering adding a new product line clothing for jazz musicians. To invest in this new line, Haley would have to conduct additional market research, hire some new, very hip designers, invest in new advertising campaigns, and will have to expand its manufacturing operations, including purchasing additional machinery and equipment.

1. Do you think Haley has the cash needed to make these investments additional employees and purchases of PPE, while continuing to meet its existing obligations? If not, how would you expect they would come up with the funds needed for expansion? What impact would that have on their financial situation (e.g., ratios & trends)?

2. Overall, would you recommend Haley move in this direction? Briefly explain why or why not. In answering the question, refer specifically to the financial data provided above and that results from your analysis in parts (a) (e(a)) above.