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Victoria Cardin is deeply concerned about the state of her company, Cardin Controls: Her company makes control components for airplanes, and had been tracking with

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Victoria Cardin is deeply concerned about the state of her company, Cardin Controls: Her company makes control components for airplanes, and had been tracking with the rest of the industry until two years ago. She recently bid for a new contract with a manufacturer she had never dealt with before, but her bid was dependent on getting some critical parts from China. With new import tarrifs on those components, she knew that her costs had gone up and profits gone down. She has not had the time to completely analyze her financial situation for the immediately past year, so hires you to do that for her. She has provided comparative information for years 1 and 2 , and needs you to analyze year 3 . She did not issue any new stock or pay dividends in this time period. 1. Complete the common size calculations for the income statement for year 3 . Also provide the percentage changes for sales from the income statement between year 2 and year 3 2. Provide written analysis of the income statement components, giving Victoria a full picture of her revenue and costs. 3. Complete the ratio analysis for year 3 comparable to the ratios provided for the industry and past history of the company. 4. Provide written analysis of the ratios, focusing on the areas where Victoria should make changes to improve her company's outlook. 5. What do you recommend Victoria do going forward? Be complete in your recommendation. Cardin Controls (0005) Victoria Cardin is deeply concerned about the state of her company, Cardin Controls: Her company makes control components for airplanes, and had been tracking with the rest of the industry until two years ago. She recently bid for a new contract with a manufacturer she had never dealt with before, but her bid was dependent on getting some critical parts from China. With new import tarrifs on those components, she knew that her costs had gone up and profits gone down. She has not had the time to completely analyze her financial situation for the immediately past year, so hires you to do that for her. She has provided comparative information for years 1 and 2 , and needs you to analyze year 3 . She did not issue any new stock or pay dividends in this time period. 1. Complete the common size calculations for the income statement for year 3 . Also provide the percentage changes for sales from the income statement between year 2 and year 3 2. Provide written analysis of the income statement components, giving Victoria a full picture of her revenue and costs. 3. Complete the ratio analysis for year 3 comparable to the ratios provided for the industry and past history of the company. 4. Provide written analysis of the ratios, focusing on the areas where Victoria should make changes to improve her company's outlook. 5. What do you recommend Victoria do going forward? Be complete in your recommendation. Cardin Controls (0005)

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