FINANCIAL STATEMENT ANALYSIS DATA INFORMATION Statement of Financial Position of cf company 2015 2016 Cash and Cash Equivalents $ 990,000.00 $ 950,000.00 Short Term Marketable Securities $ 10,000.00 $ 15,000.00 Accounts Receivable $ 1,020,000.00 $ 1,550,000.00 Inventory $ 1,005,000.00 $ 1,360,000.00 Other Current Assets $ 870,000.00 $ 1,150,000.00 Total Current Assets $ 3,895,000.00 $ 5,025,000.00 Fixed Assets $ 14,006,000.00 $ 17,605,000.00 Accumulated Depreciation $ -1,280,000.00 $ -1,700,000.00 Net Fixed Assets $ 12,726,000.00 $ 15,905,000.00 Longterm Investments $ 360,000.00 $ 320,000.00 Investments in Other Companies $ 65,000.00 $ - Intangibles and Other Assets $ 100,000.00 $ 110,000.00 Total Non Current Assets $ 13,251,000.00 $ 16,335,000.00 Total Assets $ 17,146,000.00 $ 21,360,000.00 Accounts Payable $ 2,050,000.00 $ 3,150,000.00 Short Term Borrowings $ 1,200,000.00 $ 1,830,000.00 Short Term Portion of LT Debt $ 12,000.00 $ 15,000.00 Other Current Liabilities $ 1,050,000.00 $ 1,250,000.00 Total Current Liabilities $ 4,312,000.00 $ 6,245,000.00 Longterm Debt / Borrowings $ 1,160,000.00 $ 1,750,000.00 Other Longterm Liabilities $ 650,000.00 $ 750,000.00 Total Non Current Liabilities $ 1,810,000.00 $ 2,500,000.00 Total Liabilities $ 6,122,000.00 $ 8,745,000.00 Preferred Equity - - Common Equity $ 2,044,000.00 $ 2,005,000.00 Additional Paid in Capital $ 5,013,000.00 $ 4,900,000.00 Retained Earnings $ 5,097,000.00 $ 7,050,000.00 Additional Paid in Capital $ 275,000.00 $ 120,000.00 Treasury Stock $ -1,405,000.00 $ -1,460,000.00 Total Shareholder Equity $ 11,024,000.00 $ 12,615,000.00 Total Liabilities & Equity $ 17,146,000.00 $ 21,360,000.00 Statement of Comprehensive Income of cf company 2015 2016 Net Sales 12,060,000 16,700,000 Other Operating Revenues 16,000 19,000 Total Revenues 12,076,000 16,719,000 Cost of Goods Sold (4,950,000) (7,050,000) Other Operating Expenses (11,000) (13,000) Total Direct Expenses (4,961,000) (7,063,000) Selling, General & Administrative (3,300,000) (3,880,000) Operating Income 3,815,000 5,776,000 Interest Expenses (117,000) (122,000) Foreign Exchange (Loss) Gain 0 0 Associated Company (Loss) Gain 0 0 Other NonOperating (Loss) Gain 0 17,000 Income Tax Expense (790,000) (1,005,000) Reserve Charges 0 0 EBITDA 3,815,000 5,776,000 EBITDA (Loss) Gain 0 0 Tax Expenses 0 0 Retained Earnings 170,000 302,000 Net Income 3,815,000 5,776,000 answer this Compute the following financial ratio analysis using the data above. 1. Prepare a vertical analysis for the Statement of Income and Statement of Financial Position for years 2019 and 2020. (1 decimal place) 2. Give insights or interpreting the results of the vertical analysis made. 3. Prepare a horizontal analysis for the Statement of Income and Statement of Financial Position for year 2019 and 2020. (1 decimal place)

FINANCIAL STATEMENT ANALYSIS DATA INFORMATION Statement of Financial Position of cf company 2015 2016 Cash and Cash Equivalents $ 990,000.00 $ 950,000.00 Short Term Marketable Securities $ 10,000.00 $ 15,000.00 Accounts Receivable $ 1,020,000.00 $ 1,550,000.00 Inventory $ 1,005,000.00 $ 1,360,000.00 Other Current Assets $ 870,000.00 $ 1,150,000.00 Total Current Assets $ 3,895,000.00 $ 5,025,000.00 Fixed Assets $ 14,006,000.00 $ 17,605,000.00 Accumulated Depreciation $ -1,280,000.00 $ -1,700,000.00 Net Fixed Assets $ 12,726,000.00 $ 15,905,000.00 Longterm Investments $ 360,000.00 $ 320,000.00 Investments in Other Companies $ 65,000.00 $ - Intangibles and Other Assets $ 100,000.00 $ 110,000.00 Total Non Current Assets $ 13,251,000.00 $ 16,335,000.00 Total Assets $ 17,146,000.00 $ 21,360,000.00 Accounts Payable $ 2,050,000.00 $ 3,150,000.00 Short Term Borrowings $ 1,200,000.00 $ 1,830,000.00 Short Term Portion of LT Debt $ 12,000.00 $ 15,000.00 Other Current Liabilities $ 1,050,000.00 $ 1,250,000.00 Total Current Liabilities $ 4,312,000.00 $ 6,245,000.00 Longterm Debt / Borrowings $ 1,160,000.00 $ 1,750,000.00 Other Longterm Liabilities $ 650,000.00 $ 750,000.00 Total Non Current Liabilities $ 1,810,000.00 $ 2,500,000.00 Total Liabilities $ 6,122,000.00 $ 8,745,000.00 Preferred Equity - - Common Equity $ 2,044,000.00 $ 2,005,000.00 Additional Paid in Capital $ 5,013,000.00 $ 4,900,000.00 Retained Earnings $ 5,097,000.00 $ 7,050,000.00 Additional Paid in Capital $ 275,000.00 $ 120,000.00 Treasury Stock $ -1,405,000.00 $ -1,460,000.00 Total Shareholder Equity $ 11,024,000.00 $ 12,615,000.00 Total Liabilities & Equity $ 17,146,000.00 $ 21,360,000.00 Statement of Comprehensive Income of cf company 2015 2016 Net Sales 12,060,000 16,700,000 Other Operating Revenues 16,000 19,000 Total Revenues 12,076,000 16,719,000 Cost of Goods Sold (4,950,000) (7,050,000) Other Operating Expenses (11,000) (13,000) Total Direct Expenses (4,961,000) (7,063,000) Selling, General & Administrative (3,300,000) (3,880,000) Operating Income 3,815,000 5,776,000 Interest Expenses (117,000) (122,000) Foreign Exchange (Loss) Gain 0 0 Associated Company (Loss) Gain 0 0 Other NonOperating (Loss) Gain 0 17,000 Income Tax Expense (790,000) (1,005,000) Reserve Charges 0 0 EBITDA 3,815,000 5,776,000 EBITDA (Loss) Gain 0 0 Tax Expenses 0 0 Retained Earnings 170,000 302,000 Net Income 3,815,000 5,776,000 answer this Compute the following financial ratio analysis using the data above. 1. Prepare a vertical analysis for the Statement of Income and Statement of Financial Position for years 2019 and 2020. (1 decimal place) 2. Give insights or interpreting the results of the vertical analysis made. 3. Prepare a horizontal analysis for the Statement of Income and Statement of Financial Position for year 2019 and 2020. (1 decimal place)

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter12: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12.7E

See similar textbooks

Related questions

Concept explainers

Question

FINANCIAL STATEMENT ANALYSIS

DATA INFORMATION

Statement of Financial Position of cf company
	2015	2016

Cash and Cash Equivalents	$ 990,000.00	$ 950,000.00
Short Term Marketable Securities	$ 10,000.00	$ 15,000.00
Accounts Receivable	$ 1,020,000.00	$ 1,550,000.00
Inventory	$ 1,005,000.00	$ 1,360,000.00
Other Current Assets	$ 870,000.00	$ 1,150,000.00
Total Current Assets	$ 3,895,000.00	$ 5,025,000.00

Fixed Assets	$ 14,006,000.00	$ 17,605,000.00
Accumulated Depreciation	$ -1,280,000.00	$ -1,700,000.00
Net Fixed Assets	$ 12,726,000.00	$ 15,905,000.00
Longterm Investments	$ 360,000.00	$ 320,000.00
Investments in Other Companies	$ 65,000.00	$ -
Intangibles and Other Assets	$ 100,000.00	$ 110,000.00
Total Non Current Assets	$ 13,251,000.00	$ 16,335,000.00
Total Assets	$ 17,146,000.00	$ 21,360,000.00

Accounts Payable	$ 2,050,000.00	$ 3,150,000.00
Short Term Borrowings	$ 1,200,000.00	$ 1,830,000.00
Short Term Portion of LT Debt	$ 12,000.00	$ 15,000.00
Other Current Liabilities	$ 1,050,000.00	$ 1,250,000.00
Total Current Liabilities	$ 4,312,000.00	$ 6,245,000.00

Longterm Debt / Borrowings	$ 1,160,000.00	$ 1,750,000.00
Other Longterm Liabilities	$ 650,000.00	$ 750,000.00
Total Non Current Liabilities	$ 1,810,000.00	$ 2,500,000.00
Total Liabilities	$ 6,122,000.00	$ 8,745,000.00

Preferred Equity	-	-
Common Equity	$ 2,044,000.00	$ 2,005,000.00
Additional Paid in Capital	$ 5,013,000.00	$ 4,900,000.00
Retained Earnings	$ 5,097,000.00	$ 7,050,000.00
Additional Paid in Capital	$ 275,000.00	$ 120,000.00
Treasury Stock	$ -1,405,000.00	$ -1,460,000.00
Total Shareholder Equity	$ 11,024,000.00	$ 12,615,000.00

Total Liabilities & Equity	$ 17,146,000.00	$ 21,360,000.00

Statement of Comprehensive Income of cf company
	2015	2016
Net Sales	12,060,000	16,700,000
Other Operating Revenues	16,000	19,000
Total Revenues	12,076,000	16,719,000
Cost of Goods Sold	(4,950,000)	(7,050,000)
Other Operating Expenses	(11,000)	(13,000)
Total Direct Expenses	(4,961,000)	(7,063,000)
Selling, General & Administrative	(3,300,000)	(3,880,000)
Operating Income	3,815,000	5,776,000

Interest Expenses	(117,000)	(122,000)
Foreign Exchange (Loss) Gain	0	0
Associated Company (Loss) Gain	0	0
Other NonOperating (Loss) Gain	0	17,000
Income Tax Expense	(790,000)	(1,005,000)
Reserve Charges	0	0
EBITDA	3,815,000	5,776,000

EBITDA (Loss) Gain	0	0
Tax Expenses	0	0
Retained Earnings	170,000	302,000
Net Income	3,815,000	5,776,000

answer this

	Compute the following financial ratio analysis using the data above.
	1. Prepare a vertical analysis for the Statement of Income and Statement of Financial Position for years 2019 and 2020. (1 decimal place)
	2. Give insights or interpreting the results of the vertical analysis made.
	3. Prepare a horizontal analysis for the Statement of Income and Statement of Financial Position for year 2019 and 2020. (1 decimal place)
	4. Give insights or interpreting the results of the horizontal analysis made
	5. Compute the following financial ratios and interpreting the results: (1 decimal place)
	a. current ratio
	b. quick ratio
	c. receivable turnover
	d. age of receivables
	e. inventory turnover
	f. age of inventory
	g. asset turnover
	h. fixed asset turnover
	i. times interest earned
	j. debt ratio
	k. equity ratio
	l. debt to equity ratio
	m. gross profit margin
	n. return on equity
	o. return on assets

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.