2019 Income Statement 3 2019 Sales Assets 5 Current Assets 6 Cash 7 Accounts Recievable 8 Inventory 9 Total Balance sheets as of Dec 31, 2018 and 2019 2018 2019 2018 Uabilities and Owners' Equity Current Liabilities 5,298 5,827 Accounts Payable 3,754 7,707 8,477 Notes Payable 3,045 12,150 21,956 Other 25. 155 36,260 Total 6.951 Long-term debt 24,700 Owners Equly 75,301 79,412 Common Stock and paid in surplus 40,000 100 456 115 672 Accumulated Retained Earnings 28,805 Total 68,805 Total abilities and owners' equit 100,456 152 3,986 3,318 179 7,483 16,000 229,854 184,317 8,730 36,807 1,811 34,996 7349 27547 Cost of Goods Sold Depreciation EBIT Interest Paid Taxable income Taxes Net Income Dividends Additions to retained earnings 10 11 Fixed Assets 12 Net Plant and equipment 3 Total Assets 37,000 16,000 11,647 55.189 34 ES 92,189 115,672 16 7 Short-term solvency raties 2018 2019 sa) Current Ratio current assets/current liabilities 3.6189038 4.84565014 sb Quick Ratio current assets inventory current liabilities 1.8709538 1.911532808 cash/current liabilities 0.7621925 0.778698383 O Cash Ratio Asset Utilization Ratios 2 Total asset turnover Sales/Total Assets 1.98711875 8.394835125 e) Inventory turnover Receivables turnover Long-term solvency ratios COGS/Inventory Sales/AR 27.11501711 5) Total debt ratio total assets total equity/total assets 0.3150733 0.203013694 hj Debt-equity ratio total debt/total equity 1.4600102 1) Equity multiplier total assets/total equity Times interest earned rati EBIT/interest 1.254726703 20.32413031 k] Cash coverage ratio Profitability ratios (EBIT+Depreciation interest 25.14467145 1) Profit margin Net Income/Sales 12% m) Return on assets Net Income/Total Assets 24% ml Peturn on guy that facut B Net Fixed Assets and Depreciation On the balance sheet, the net fixed assets (NFA) account is equal to the gross fixed assets (FA) account (which records the acquisition cost of fixed assets) minus the accumulated depreciation (AD) account (which records the total depreciation taken by the firm against its fixed assets). Using the fact that NFA = FA AD, show that the expression given in the chapter for net capital spending, NFAend - NFAbeg +D (where D is the depreciation expense during the year), is equivalent to FAend FAseg. + LO4 20 LO4 21 L04 22 LO4 23 P 91 #35 P 93 #43 +