PROBLEM SET 2 Bentley Corporation, Inc. Balance Sheets ($ 000s) Bentley Corporation, Inc. Income Statements ($ 000s) 2016 2017 2018 2016 2017 2018 Assets Current assets Cash Accounts receivable Inventory 36,349 193,387 219,568 449,304 41,086 187,147 237,785 466,018 37,416 184,659 244,002 466,077 Fixed assets Net plant and equipment Sales Cost of goods sold Other expenses Depreciation EBIT Interest Taxable income Taxes (21%) Net income Dividends Additions to retained earnings 2,378,654 1,427,192 475,731 190,292 285,439 40,913 244,526 46,878 197,648 89,200 108,448 2,507,768 1,509,933 503,621 201,677 292,537 43,968 248,569 47,991 200,578 91,300 109,278 2,640,627 1,590,896 529,306 212,904 307,521 45,780 261,741 5 2,135 209,606 93,400 116,206 1,250,485 1,699,789 1,398,801 1,864,819 1,549,109 2.015,186 Liabilities & Owner's Equity Current liabilities Accounts payable Notes payable 104,061 85,717 189,778 595,500 115,993 129,537 245,530 595,500 109,418 95,273 204,691 670,500 Long-term debt Owners' equity Common stock & paid-in surplus Retained earnings 350,000 564,511 914,511 1,699,789 350,000 350,000 673,789 789,995 1,023,789 1,139,995 1,864,8192,015,186 (1) Using the financial statements presented above, compute the 2017 and 2018 statements of cash flows for Bentley Corporation, Inc. (2) Construct the common size and common-base year balance sheets and income statements for Bentley Corporation, Inc. (3) Undertake a comprehensive financial statement ratio analysis of Bentley Corporation, Inc. for all three years and compute: The short-term solvency measures of: current ratio; quick ratio; cash ratio; net working capital to total assets ratio, and; interval measure. The long-term solvency measures of: total debt ratio; debt-equity ratio; equity multiplier; long-term debt ratio; times interest earned, and; cash coverage. The asset management measures of: inventory turnover and days' sales in inventory; receivables turnover and days' sales in receivables; NWC turnover; fixed asset turnover, and; total asset turnover. The profitability measures of: profit margin; return on assets, and; return on equity