Walilial Statement Analysis Chapter 14 Case Study CS-1 LO 3 4 5 Suppose that you have decided to invest some money in the stock market. After some come across the financial statements of Yong Wireless Limited. Before you can make the company, you will need to calculate some key financial ratios and then analyze them are presented below. some research online, you n make a decision to invest in vze them. The statements 2018 Yong Wireless Limited Consolidated Balance Sheet (in thousands) As at February 28 2019 Assets Cash $1,550,861 Short-Term Investments 360,614 Accounts Receivable 2,800,115 Merchandise Inventory 621,611 Other Current Assets 479,455 Total Current Assets 5,812,656 Long-Term Investment 958,248 Property, Plant and Equipment 1,956,581 Intangible Assets 1,476,924 Total Assets $10,204,409 $835,546 682,666 2,269,845 682,400 371,129 4,841,586 720,635 1,334,648 1,204,503 $8,101,372 Liabilities Accounts Payable Accrued Liabilities Income Taxes Payable Other Current Liabilities Total Current Liabilities Long-Term Liabilities Total Liabilities Stockholders' Equity Common Stock Retained Earnings Stockholders' Equity Liabilities and Stockholders' Equity $615,620 1,638,260 95,650 82,247 2,431,777 169,969 2,601,746 $448,339 1,238,602 361,460 66,950 2,115,351 111,893 2,227,244 2,113,146 5,489,517 7,602,663 $10,204,409 2,208,235 3,665,893 5,874,128 $8,101,372 Yong Wireless Limited Consolidated Income Statement in thousands) For the Year Ended February 28 2019 2018 Revenue $14,953,224 $11,065,186 Cost of Sales 8,368,958 5,967,888 Gross Profit 6,584,266 5,097,298 Operating Expenses Research and Development 964,841 684,702 Selling, Marketing and Admin 1,907,398 1,495,697 Amortization Expense 310,357 194,803 Litigation Expense 163,800 Total Operating Expenses 3,346,396 2,375,202 2,722,096 Income from Operations Other Income and Expenses 28,640 78,267 Investment Income 3,266,510 2,800,363 Income before Income Tax Expense 907,747 Income Tax Expense $2.457.144 $1,892.616 Net Income 3,237,870 809,366 Yong Wireless Limited Summary of the Statement of Cash Flows (in thousands) For the Year Ended February 28 2019 2018 Net Cash Provided by Operations $3,034,874 $1,451,845 Net Cash Used by Investing ($1,470,127) (51,823,523) Net Cash Used by Financing ($849,432) $22,826 Net Increase (Decrease) in Cash $715,315 (5348.852) Required Calculate the following ratios for Yong Wireless Limited for 2019 and 2018. For any ratios average (i.e. ROE), use the closing balance for the year. 2018 2019 Gross Profit Margin Net Profit Margin Return on Equity Return on Assets Asset Turnover Current Ratio Quick Ratio Debt-to-Equity Ratio at in 2019 over 2018? Would b) Based on the figures you calculated, has the company shown improvement in 2019 over you invest in Yong Wireless Limited? Explain