Using the financial statements that you have prepared for Smith Manufacturing; prepare the following analyses in Excel:

• Horizontal analysis
• Vertical analysis
• Ratio analysis - calculate a minimum of five ratios

Smith Manufacturing, Inc. Post-Closing Trial Balance December 31, 20XX DR Cash Accounts receivable Allowance for uncollectible accounts Prepaid insurance Inventory Land Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Accounts payable Note payable Salaries payable Interest payable Note payable (due in 5 years, 3%) Common Stock (3,000 shares outstanding) Retained earnings Sales revenue Cost of goods sold Salaries expense Insurance expense Depreciation expense Interest expense Bad debt expense Totals CR 15,000 225,750 20,000 5,000 80,000 50,000 150,000 7,500 500,000 50,000 55,000 50,000 5,000 17,250 350,000 300,000 171,000 1,025,750 1,025,750 Smith Manufacturing, Inc. Trial Balance December 31, 20XX Cash Accounts receivable Allowance for uncollectible accounts Prepaid insurance Inventory Land Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Accounts payable Note payable (due in 10 months, 5%) Salaries payable Interest payable Note payable (due in 5 years, 3%) Common Stock (3,000 shares outstanding) Retained earnings Sales revenue Cost of goods sold Salaries expense Insurance expense Depreciation expense Interest expense Bad debt expense Totals DR 362,750 320,750 CR 15,000 10,000 30,000 50,000 150,000 7,500 500,000 50,000 105,000 125,000 500,000 300,000 171,000 850,000 550,000 150,000 2,123,500 2,123,500 Adjusting Entries DR Bad debt expense Allowance for uncollectible accounts CR 8500 8500 Insurance expense Prepaid insurance 2,000 Inventory Cost of goods sold 10,000 Depreciation expense Accumulated depreciation-building Accumulated depreciation-equipment 57,500 Interest expense Interest payable 21,250 Salaries expense Salaries payable 2000 2,000 10,000 7,500 50000 21250 Smith Manufacturing, Inc. Adjusted Trial Balance December 31, 20XX DR Cash 362,750 Accounts receivable 320,750 Allowance for uncollectible accounts Prepaid insurance 8,000 Inventory 40,000 Land 50,000 Building 150,000 Accumulated depreciation-building Equipment 500,000 Accumulated depreciation-equipment Accounts payable Note payable (due in 10 months, 5%) Salaries payable Interest payable Note payable (due in 5 years, 3%) Common Stock (3,000 shares outstanding) Retained earnings Sales revenue Cost of goods sold 540,000 Salaries expense 152,000 Insurance expense 2,000 2000 CR 23,500 15,000 100,000 105,000 125,000 2,000 21,250 500,000 300,000 171,000 850,000 Depreciation expense Interest expense Bad debt expense Totals 57,500 21,250 8,500 2,212,750 Closing Entries DR CR Sales revenue Income Summary 850,000 Income Summary Cost of goods sold Salaries expense Insurance expense Depreciation expense Interest expense Bad debt expense 781,250 Income Summary Retained earnings 2,212,750 850,000 540,000 152,000 2,000 57,500 21,250 8,500 68,750 68,750 Smith Manufacturing, Inc. Balance Sheet December 31, 20XX Assets Current Assets: Cash Accounts receivable, Net Prepaid insurance Inventory Total current assets Property, Plant, & Equipment Land Building, Net Equipment, Net Total P, P, & E Total Assets Liabilities and Stockholder's Equity Current Liabilities: Accounts payable Note payable (due in 10 months, 10%) Salaries payable Interest payable Total current liabilities 362750 297250 8000 40000 708000 50000 135000 400000 585000 1293000 105000 125000 2000 21250 253250 Long-term liabilities: Note payable (due in 5 years, 7%) Total liabilities Stockholder's Equity Common Stock Retained Earnings Total stockholder's equity Total liabilities and stockholder's equity 500000 753250 300000 239750 539750 1293000 Smith Manufacturing, Inc. Income Statement For the Period Ended December 31, 20XX Sales Cost of goods sold Gross profit Operating Expenses Salaries expense Insurance expense Depreciation expense Interest expense Bad debt expense Net income Earnings Per Share 850000 540000 310000 152,000 2,000 57,500 17,250 8,500 237,250 72,750 $ 24.25 Smith Manufacturing, Inc. Statement of Cash Flows For the Period Ended December 31, 20XX Cash Flows from Operating Activities: Net Income (loss) Add: depreciation Increase in accounts receivable Increase in prepaid insurance Increase in inventory Decrease in accounts payable Decrease in salaries payable Net cash flow used by operating activities 72750 57500 -91500 -3000 40000 50000 -3000 Cash Flows from Investing Activities Cash Flows from Financing Activities Cash received from short-term note Cash received from long-term note Net cash provided by financing activities Cash, beginning Add: Increase Cash, Ending -7500 122750 0 75000 150000 225000 15000 347750 362750