Calculate Trend% and Common%

1) Analyze liquidity.

2) Analyze profitability.

3) What items in the statement of cash flows should be of concern to ABC company

ABC Company
Comparative Balance Sheets
As of December 31, 2015 & 2014
				Trend %	Common %	Common %
		2015	2014	(2014 to 2015)	2015	2014
Assets
Current assets
Cash		$15,875	$46,200
Accounts receivable		300,000	224,300
Inventory		259,900	202,600
Prepaid expenses		14,700	28,200
Total current assets		590,475	501,300
Long-term investments		123,000	175,000
Plant & equipment		882,000	761,000
Less Accumulated depreciation		215,500	193,300
Net Plant & equipment		666,500	567,700
Total assets		$1,379,975	$1,244,000
Liabilities & Stockholder's Equity
Current liabilities
Accounts payable		$184,900	$242,100
Accrued liabilities		9,100	17,200
Income taxes payable		50,800	44,500
Total current liabilities		244,800	303,800
Bonds payable		233,000	122,000
Total liabilities		477,800	425,800
Stockholder's equity
Common stock		622,500	655,000
Retained earnings		279,675	163,200
Total stockholder's equity		902,175	818,200
Total liabilities & stockholder's equity		$1,379,975	$1,244,000
ABC Company
Comparative income statements
For the year's ended December 31, 2015 & 2014
				Trend %	Common %	Common %
		2015	2014	(2014 to 2015)	2015	2014
Sales		$1,106,800	$1,000,000
Cost of goods sold		637,500	600,750
Gross margin		469,300	399,250
Selling & Administrative expenses		249,550	259,250
Net operating income		219,750	140,000
Non-operating items:
Gain on sale of investments		25,500	-
Gain on sale of equipment		31,800	-
Interest expense		23,300	12,200
Income before tax		253,750	127,800
Income tax expense		76,125	38,340
Net income		$177,625	$89,460
		2015	2014
Accounts receivable turnover		4.222	4.458
Current ratio		2.412	1.650
Debt ratio		0.346	0.342
Earnings per share		0.355	0.179
Inventory turnover		2.757	2.965
Quick ratio		1.290	0.890
Return on assets		0.148	0.079
Return on equity		0.207	0.109
Return on sales		0.160	0.089
Times interest earned		11.891	11.475
ABC Company
Statement of Cash flows
For the year ended December 31, 2015
Cash flows from operating activities:
Net Income				177,625
Adjustments to net income:
Depreciation expense			$62,200
Increase in accounts receivable			(75,700)
Increase in inventory			(57,300)
Decrease in prepaid expenses			13,500
Decrease in accounts payable			(57,200)
Decrease in accrued liabilities			(8,100)
Increase in income taxes payable			6,300
Gain on sale of investments			(25,500)
Gain on sale of equipment			(31,800)	(173,600)
Net cash provided by operating activities				$4,025
Cash flows from investing activities:
Sold equipment			$170,800
Purchased equipment			(300,000)
Sold long-term investments			77,500
Net cash used by investing activities				(51,700)
Cash flows from financing activities:
Bonds issued			$141,000
Bonds retired			(30,000)
Common stock retired			(32,500)
Dividends paid			(61,150)
Net cash provided by financing activities				17,350
Net change in cash				$(30,325)
Add beginning cash				46,200
Cash balance December 31, 2015				$15,875