2016 155,000 10,000 250,000 415,000 250,000 (25,000) 225,000 640,000 2017 2018 2019 2020 309,099 75,948 28,827 18,425 12,000 20,000 77,653 90,078 270,000 500,000 520,000 560,000 591,099 595,948 626,480 668,503 250,000 500,000 500,000 500,000 (50,000) (100,000) (150,000) (200,000) 200,000 400,000 350,000 300,000 791,099 995,948 976,480 968,503 Gillian Pool & Spa Supplies Balance Sheet Assets Cash & Marketable Securities Accounts Receivable Inventory Current Assets Land, Buildings & Equipment Accumulated Depreciation Net Fixed Assets Total Assets Liabilities Short Term Bank Loans Accounts Payable Accruals Current Liabilities Long-term Bank Loans Mortgage Long-Term Debt Total Liabilities Equity Common Stock (100,000 shares) Retained Earnings Total Equity Total Liabilities & Equity 50,000 10,000 5,000 65,000 63,366 175,000 238,366 303,366 145,000 10,506 5,100 160,606 98,000 173,000 271,000 431,606 140,000 19,998 7,331 167,329 196,000 271,000 467,000 634,329 148,000 15,995 9,301 173,296 190,000 268,000 458,000 631,296 148,000 16,795 11,626 176,421 183,000 264,000 447,000 623,421 320,000 16,634 336,634 640,000 320,000 39,493 359,493 791,099 320,000 41,619 361,619 995,948 320,000 25,184 345,184 976,480 320,000 25,082 345,082 968,503 bus Next Download Gillian Pool & Spa - Income Statement.xlsx (12.2 KB) Gillian Pool & Spa Supplies Income Statement 2016 2017 Net Sales 900,000 982,500 COGS 729,000 801,900 Gross Profit 171,000 180,600 Admin & Selling Expenses 45,000 58,950 Depreciation Expense 37,500 40,000 Miscellaneous Expenses 3,041 3,557 Total Operating Expenses 85,541 102,507 Earnings before Interest & Taxes 85,459 78,093 Interest on ST loans 9,600 9,600 Interest on LT loans 5,400 5,400 Interest on Mortgage 16,000 13,840 Total Interest 31,000 28,840 Earnings Before Taxes 54,459 49,253 Taxes 21,784 19,701 Net Income 32,675 29,552 Dividends Additions to Retained Earnings 32,675 29,552 2018 2019 2020 1,170,000 1,310,400 1,520,064 962,280 1,100,736 1,305,000 207,720 209,664 215,064 64,350 72,072 91,204 50,000 50,000 50,000 4,680 14,414 22,801 119,030 136,486 164,005 88,690 73,178 51,059 9,600 17,760 17,760 5,400 13,500 16,470 12,240 21,440 21,120 27,240 52,700 55,350 61,450 20,478 (4,291) 24,580 8,191 (1,716) 36,870 12,287 (2,575) 36,870 12,287 (2.575) Questions: 1. Calculate the increase in Gillian Pool's Net sales and Net Income from 2016 - 2020 (in the form of a percentage). For example: if net sales are 100 in 2016 and 105 in 2017, then net sales increased by 5%. Show your work. 2. Calculate the Gross Profit Margin for each year (2016-2020). Show your work. 3. Using the information from questions #1 and #2 above, analyze and explain in your own words how the company sales, income and gross margin is doing over the past 5 years. 4. In order to shed some light on the firm's financial condition, which statements should Denny analyze and what ratios might be valuable to calculate? Please explain why. 5. Calculate the following ratios for each of the 5 years and show your work: 1. Profit Margin = Net Income / Net Sales 2. Return on Assets - Net Income / Total Assets 3. Inventory Turnover - Sales / Inventory 4. Current Ratio - Current Assets / Current Liabilities 5. Debt to Equity - Total Liabilities/Total Equity 3. Using the information from questions #1 and #2 above, analyze and explain in your own words how the company sales, income and gross margin is doing over the past 5 years. 4. In order to shed some light on the firm's financial condition, which statements should Denny analyze and what ratios might be valuable to calculate? Please explain why. 5. Calculate the following ratios for each of the 5 years and show your work: 1. Profit Margin = Net Income / Net Sales 2. Return on Assets - Net Income / Total Assets 3. Inventory Turnover - Sales / Inventory 4. Current Ratio = Current Assets / Current Liabilities 5. Debt to Equity = Total Liabilities/Total Equity 6. Explain in one to two sentences for each ratio, how the company is doing from 2016 to 2020. 7. Based on the ratios and calculations above, what arguments would have to be made to convince the bank that it should grant Gillian Pool & Spa the loan