Vertical analysis and Horizontal analysis along with ratios

AutoSave Off HUB Ratio Analysis Jessica Belzer JB 7 File Home Insert Draw Design Layout References Mailings Review View Help Search Share Comments E 21 X Cut LG Copy * Format Painter Arial 10AA A Aar A E U 2 x, x? ADA 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtle Em... Emphasis Find Replace Select Paste E Subtitle Dictate Sensitivity Clipboard Font Paragraph Styles Editing Voice Sensitivity Average days to collect accounts receivable Inventory turnover beginning inventory at January 1, 2018, was $140,000 Average days to sell inventory Asset Turnover Debt to assets ratio Debt to equity ratio Number of times interest earned Plant assets to long-term debt Net margin 365 - Turnover Cost of goods sold + Avg. inventory 365+ Turnover Net Sales / Average total assets Total liabilities - Total assets Total liabilities - Total stockholders' equity (Income before interest + taxes) / Interest expense Plant assets + Long- term debt Net income - Net sales Net income - Avg. total assets Net income + Avg stockholders' equity Net income - Preferred dividend / Average common shares outstanding Stockholders' equity - Preferred rights/ common shares outstanding Market price per share + EPS Dividends per share+ Market price per share Return on investment Return on equity Earnings per share Book value per share Price-earnings ratio market price per share: 2018, $11.75 2010, $12.50 Dividend yield Key Liquidity Solvency Profitability Asset Management (activity) Market Page 3 of 3 480 words D Focus 16 + 90% H Type here to search a N W 5:58 PM 9/22/2020 AutoSave Off HUB Ratio Analysis Jessica Belzer JB 7 File Home Insert Draw Design Layout References Mailings Review View Help Search Share Comments E 21 X Cut LG Copy * Format Painter Arial 10AA A Aar A E U 2 x, x? ADA AaBbccdc Aabbccdc AaBbc Aabbcc AaB Aabbccc AaBbCcDe AaBbccd 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtle Em... Emphasis Find Replace Select Paste Subtitle Dictate Sensitivity y Clipboard Font Paragraph Styles Editing Voice Sensitivity 2018 $ 260,000 6,000 266,000 Statements of income and Retained Earnings For the Years Ended December 31 2019 Revenues Sales (net) $ 280,000 Other revenues 9,000 Total revenues 289,000 Expenses Cost of goods sold 140,000 Selling, general, and administrative 60,000 Interest expense 9,500 Income tax expense 48,000 Total expenses 257,500 Net earnings (net income) 31,500 Retained earnings, January 1 96,900 Less: Preferred stock dividends 4,000 Common stock dividends 3,400 Retained earnings, December 31 $ 121,000 118,000 55,000 8,700 47,000 228,700 37,300 67,000 4,000 3,400 96,900 $ Perform vertical and horizontal analysis For the following ratios for year 2018, you will not have 2017 numbers. So, just divide by the 2018 Asset Turnover Return on Investment Earnings Per Share Book Value Per Share 2019 2018 Working capital Current ratio Current assets - Current liabilities Current assets + Current liabilities Quick assets + Current liabilities Net sales - Average accounts receivables Quick ratio Receivables turnover beginning receivables at January 1, 2018, were $47.000 Page 2 of 3 480 words D Focus 16 + 90% H Type here to search a N W 5:58 PM 9/22/2020 AutoSave Off HUB Ratio Analysis Jessica Belzer JB 7 File Home Insert Draw Design Layout References Mailings Review View Help Search Share Comments X Cut Copy Arial 10AA A Aar A B E A I U 2 x, x? ADA E DE 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtle Em... Emphasis Find Replace Select Paste Subtitle Dictate Sensitivity y Format Painter Clipboard Font Paragraph Styles Editing Voice Sensitivity Financial statements for Fanning Company follow. FANNING COMPANY Balance Sheets As of December 31 2019 2018 $ 18,500 $ 14,500 20,500 6,500 46,000 38,000 131,000 139,000 25,000 10,000 241,000 208,000 32,000 25,000 280,000 265,000 31,000 26,000 $584,000 $ 524,000 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock, (par value $10,5% cumulative, non-participating; 8,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 19,200 $ 8,100 78,800 65,000 26,000 20.000 124.000 93,100 150,000 150,000 29.000 24,000 179,000 174,000 303,000 267,100 80,000 80.000 80,000 80,000 121,000 96,900 281,000 256,900 $584,000 $524,000 FANNING COMPANY Page 1 of 3 480 words D Focus 16 + 90% HH Type here to search a N W 5:58 PM 9/22/2020 AutoSave Off HUB Ratio Analysis Jessica Belzer JB 7 File Home Insert Draw Design Layout References Mailings Review View Help Search Share Comments E 21 X Cut LG Copy * Format Painter Arial 10AA A Aar A E U 2 x, x? ADA 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtle Em... Emphasis Find Replace Select Paste E Subtitle Dictate Sensitivity Clipboard Font Paragraph Styles Editing Voice Sensitivity Average days to collect accounts receivable Inventory turnover beginning inventory at January 1, 2018, was $140,000 Average days to sell inventory Asset Turnover Debt to assets ratio Debt to equity ratio Number of times interest earned Plant assets to long-term debt Net margin 365 - Turnover Cost of goods sold + Avg. inventory 365+ Turnover Net Sales / Average total assets Total liabilities - Total assets Total liabilities - Total stockholders' equity (Income before interest + taxes) / Interest expense Plant assets + Long- term debt Net income - Net sales Net income - Avg. total assets Net income + Avg stockholders' equity Net income - Preferred dividend / Average common shares outstanding Stockholders' equity - Preferred rights/ common shares outstanding Market price per share + EPS Dividends per share+ Market price per share Return on investment Return on equity Earnings per share Book value per share Price-earnings ratio market price per share: 2018, $11.75 2010, $12.50 Dividend yield Key Liquidity Solvency Profitability Asset Management (activity) Market Page 3 of 3 480 words D Focus 16 + 90% H Type here to search a N W 5:58 PM 9/22/2020 AutoSave Off HUB Ratio Analysis Jessica Belzer JB 7 File Home Insert Draw Design Layout References Mailings Review View Help Search Share Comments E 21 X Cut LG Copy * Format Painter Arial 10AA A Aar A E U 2 x, x? ADA AaBbccdc Aabbccdc AaBbc Aabbcc AaB Aabbccc AaBbCcDe AaBbccd 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtle Em... Emphasis Find Replace Select Paste Subtitle Dictate Sensitivity y Clipboard Font Paragraph Styles Editing Voice Sensitivity 2018 $ 260,000 6,000 266,000 Statements of income and Retained Earnings For the Years Ended December 31 2019 Revenues Sales (net) $ 280,000 Other revenues 9,000 Total revenues 289,000 Expenses Cost of goods sold 140,000 Selling, general, and administrative 60,000 Interest expense 9,500 Income tax expense 48,000 Total expenses 257,500 Net earnings (net income) 31,500 Retained earnings, January 1 96,900 Less: Preferred stock dividends 4,000 Common stock dividends 3,400 Retained earnings, December 31 $ 121,000 118,000 55,000 8,700 47,000 228,700 37,300 67,000 4,000 3,400 96,900 $ Perform vertical and horizontal analysis For the following ratios for year 2018, you will not have 2017 numbers. So, just divide by the 2018 Asset Turnover Return on Investment Earnings Per Share Book Value Per Share 2019 2018 Working capital Current ratio Current assets - Current liabilities Current assets + Current liabilities Quick assets + Current liabilities Net sales - Average accounts receivables Quick ratio Receivables turnover beginning receivables at January 1, 2018, were $47.000 Page 2 of 3 480 words D Focus 16 + 90% H Type here to search a N W 5:58 PM 9/22/2020 AutoSave Off HUB Ratio Analysis Jessica Belzer JB 7 File Home Insert Draw Design Layout References Mailings Review View Help Search Share Comments X Cut Copy Arial 10AA A Aar A B E A I U 2 x, x? ADA E DE 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtle Em... Emphasis Find Replace Select Paste Subtitle Dictate Sensitivity y Format Painter Clipboard Font Paragraph Styles Editing Voice Sensitivity Financial statements for Fanning Company follow. FANNING COMPANY Balance Sheets As of December 31 2019 2018 $ 18,500 $ 14,500 20,500 6,500 46,000 38,000 131,000 139,000 25,000 10,000 241,000 208,000 32,000 25,000 280,000 265,000 31,000 26,000 $584,000 $ 524,000 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock, (par value $10,5% cumulative, non-participating; 8,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 19,200 $ 8,100 78,800 65,000 26,000 20.000 124.000 93,100 150,000 150,000 29.000 24,000 179,000 174,000 303,000 267,100 80,000 80.000 80,000 80,000 121,000 96,900 281,000 256,900 $584,000 $524,000 FANNING COMPANY Page 1 of 3 480 words D Focus 16 + 90% HH Type here to search a N W 5:58 PM 9/22/2020