Trying to complete this workbook on Financial Statement Analysis:

ACCT202 Project Financial Statement Analysis a. Within this workbook there is a worksheet labeled "Adjusted Trial Balances". Within that worksheet you will find fully completed trial balances for three years. Also within this workbook you will find worksheets for comparative income statements and comparative balance sheets. Using the trial balances and comparative financial statements you need to calculate a variety of ratios. You will find the required ratios in the worksheet labeled "Ratios Historical". Complete all the required ratios. You MUST use formulas and/or linking to compute your ratios. You can not simply hard key the answers. You must reference the appropriate data from the trial balances and comparative financial statements. b. After completing all of your ratio calcualtions, analyze the results in comparison to prior years and industry averages. Write a business memo explaining your findings. Your memo should be writtin in Word and it should follow normal business memo conventions. There is not a length requirement, however you will be graded upon the substance of your analysis. Adjusted Trial Balance Acct. No. Account Title Dr. Cr. 100 Cash 309,700 102 Accounts Receivable 964,500 0 103 Allowance for Doubtful Accounts 0 32,500 104 Merchandise Inventory 617,556 0 105 Office Supplies 17,940 0 106 Prepaid Insurance 31,380 0 140 Land 1,827,900 0 145 Building 1,515,700 146 Accumulated Depreciation - Building 151 Equipment & Furniture - Warehouse 152 Accumulated Depreciation - Equip & Furn. - Warehouse 153 Equipment & Furniture - Office 25,220 0 154 Accumulated Depreciation - Equip & Furn. - Office 0 17,492 201 Accounts Payable 0 828,132 202 Wages Payable 0 0 203 Interest Payable 0 0 204 Dividends Payable 0 0 205 Unearned Rent 0 0 250 Notes Payable 0 0 251 Bonds Payable 0 0 252 Mortgage (Warehouse) Payable 0 139,700 300 Common Stock, $1 Par, 100,000 Authorized; 60,000 shares Issued/Outstanding 0 80,700 301 Paid In Capital - Excess of Par 0 1,560,700 330 Retained Earnings 0 1,182,444 340 Treasury Stock 0 0 500 Sales 0 8,865,700 510 Sales Discounts 0 0 511 Sales Returns & Allowances 0 0 600 Cost of Goods Sold 7,671,700 0 700 Wage Expense (hourly workers) 135,700 0 701 Salaries Expense (Exempt Staff) 375,700 0 702 Marketing Expense 303,700 0 703 Travel and Entertainment Expense 43,300 0 704 Bad Debt Expense 0 0 705 Property Tax Expense 0 0 706 Office Maintenance & Repair Expense 21,700 0 707 Legal Expenses 214,300 0 708 Insurance Expense 39,700 0 709 Utilities Expense 27,700 0 710 Office Supplies Expense 19,180 0 711 Telecommunications Expense 16,360 0 712 Depreciation Expense - Equip & Furniture - Warehouse 17,680 0 713 Depreciation Expense - Equip & Furniture - Office 17,380 0 800 Rent Income 0 0 900 Interest Expense 0 0 14,240,896 14,240,896 Total 0 1,515,700 26,900 0 0 17,828 Auto Zone Income Statement 12/31/2016 12/31/2015 12/31/2014 12/31/2013 5/31/2016 Sales Revenue Sales 8,865,700 8,874,000 9,051,480 9,141,995 725,000 0 0 0 0 0 0 0 0 0 0 Net Sales 8,865,700 8,874,000 9,051,480 9,141,995 725,000 Cost of Goods Sold 7,671,700 7,661,551 7,625,748 7,852,006 638,000 Gross Profit 1,194,000 1,212,449 1,425,732 1,289,989 87,000 Wage Expense (hourly workers) 135,700 122,400 124,848 126,096 10,000 Salaries Expense (Exempt Staff) 375,700 367,200 374,544 378,289 30,000 Marketing Expense 303,700 293,760 299,635 302,632 24,000 43,300 28,152 28,715 29,002 2,300 Bad Debt Expense 0 0 0 0 0 Property Tax Expense 0 0 0 0 0 21,700 6,120 6,242 6,305 500 Less: Sales Returns & Allowances Sales Discounts Operating Expenses Travel and Entertainment Expense Office Maintenance & Repair Expense Legal Expenses 214,300 202,572 206,623 208,690 16,550 Insurance Expense 39,700 24,480 24,970 25,219 2,000 Utilities Expense 27,700 12,240 12,485 12,610 1,000 Office Supplies Expense 19,180 3,550 3,621 3,657 290 Telecommunications Expense 16,360 673 687 694 55 Depreciation Expense - Equip & Furniture - Warehouse 17,680 2,020 2,060 2,081 165 Depreciation Expense - Equip & Furniture - Office 17,380 1,714 1,748 1,765 140 1,232,400 1,064,880 1,086,178 1,097,039 87,000 -38,400 147,569 339,554 192,950 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -38,400 147,569 339,554 192,950 0 Common Dividends 19,200 16,130 15,000 1,600 Weighted Average Common Shares 65,000 65,000 65,000 62,500 Market Price per Common Share 35.00 34.00 31.00 34.00 Total Operating Expenses Operating Income Other Revenues & Gains Rent Income Other Expenses & Losses Interest Expense Net Income 0.8424863138 0.8588941114 Auto Zone Balance Sheet 12/31/2016 ### 12/31/2015 ### 12/31/2014 ### 12/31/2013 ### 5/31/2016 ASSETS Current Assets Cash 309,700 311,640 342,804 373,656 75,000 Accounts Receivable 964,500 846,728 931,401 1,015,227 490,000 32,500 17,808 19,589 21,352 15,000 Net Accounts Receivable 932,000 828,920 911,812 993,875 475,000 Merchandise Inventory 334,000 Less: Allowance for Doubtful Accounts 617,556 637,967 701,764 764,923 Office Supplies 17,940 2,374 2,612 2,847 2,000 Prepaid Insurance 31,380 16,621 18,283 20,111 14,000 1,908,576 1,797,523 1,977,275 2,155,412 900,000 1,827,900 2,000,600 2,000,600 2,000,600 2,000,600 Equipment & Furniture - Warehouse 26,900 11,872 13,059 14,235 10,000 Accumulated Depreciation - Equip & Furn. - Warehouse 17,828 2,256 2,481 2,705 1,900 9,072 9,616 10,578 11,530 8,100 Equipment & Furniture - Office 25,220 10,091 11,100 12,099 8,500 Accumulated Depreciation - Equip & Furn. - Office 17,492 1,900 2,089 2,278 1,600 7,728 8,192 9,011 9,822 6,900 Total Long-Term Assets 1,844,700 2,018,408 2,020,189 2,021,952 2,015,600 TOTAL ASSETS 3,753,276 3,815,931 3,997,464 4,177,364 2,915,600 Total Current Assets Long-Term Assets Land Book Value: Equipment & Furniture - Warehouse Book Value: Equipment & Furniture - Office LIABILITIES Current Liabilities Accounts Payable 828,132 861,178 947,296 978,338 948,600 Wages Payable 0 0 0 0 0 Interest Payable 0 0 0 0 0 Dividends Payable 0 0 0 0 0 Unearned Rent 0 0 0 0 0 828,132 861,178 947,296 978,338 948,600 Notes Payable 0 0 0 0 0 Bonds Payable 0 0 0 0 0 Mortgage (Warehouse) Payable 139,700 131,440 144,584 157,597 200,000 Total Long-Term Liablities 139,700 131,440 144,584 157,597 200,000 TOTAL LIABILITIES 967,832 992,618 1,091,880 1,135,935 1,148,600 Total Current Liabilities Long-Term Liabilities STOCKHOLDER'S EQUITY Paid-in Capital Capital Stock 80,700 65,000 65,000 65,000 60,000 Additional Paid-in Capital 1,560,700 1,545,000 1,545,000 1,545,000 1,341,000 Retained Earnings 1,144,044 1,213,313 1,295,584 1,431,429 366,000 Total Paid-in Capital & Retained Earnings 2,785,444 2,823,313 2,905,584 3,041,429 1,767,000 TOTAL LIABILITIES & CAPITAL 3,753,276 3,815,931 3,997,464 4,177,364 2,915,600 3753276 3753276 0 3815930.56 3815930.92 -0.3600000003 3997463.616 3997464.092 0 4177364.17024 4177363.80988 0 2915600 2915600 0 TOTAL ASSETS TOTAL LIAB & EQUITY VARIANCE 12/31/2016 12/31/2015 12/31/2014 2.1 2.1 2.2 1.3 1.3 1.6 Receivables Turnover (One decimal place) Net Credit Sales Beg A/R End A/R Avg. A/R 10.2 9.5 10 Inventory Turnover (One decimal place) CGS Avg. Inventory 11.4 10.4 9.5 1.66% 3.75% 3.5% Asset Turnover (two decimal places) Net Sales Beginning Assets Ending Assets Average Assets 2.27 2.21 1.9 Return on Assets (% one decimal place) Net Income Avg. Assets 3.8% 8.3% 10.5% 5.2% 11.4% 18.3% 2.27 5.33 3.05 Price-Earnings (P/E ) Ratio (Two decimal places) Market Price per Share of Stock Earnings per Share 14.98 5.93 14.8 Payout Ratio (% One decimal place) Cash Dividends Net Income 10.9% 4.4% 15.0% 26.0% 27.3% 42.2% Liquidity Current Ratio (One decimal place) Current Assets Current Liabilities Acid Test Ratio (One decimal place) Cash A/R (Net) Short Term Investments Current Liabilities INDUSTRY Profitability Profit Margin (% with two decimal places) Net Income Net Sales Return on Common Shareholders' Equity (One decimal place) Net Income Preferred Dividends Beginning Common Equity Ending Common Equity Avg. Common Shareholders' Equity Earnings per Share (EPS) (Two decimal places) Net Income Preferred Dividends Weighted Avg. Common Shares Outstanding Solvency Ratios Debt to Total Assets Ratio (% One decimal place) Total Debt Total Assets Students compute 2016 ratios