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Year 2Year 1 Jan. 1 - Dec. 31Jan. 1 - Dec. 31 (in thousands)ASSETS Current Assets Cash and Cash Equivalents$ 200,907 $ 99,677 Accounts Receivable, Net$ 114,448 $ 97,573 Inventories$ 342,942 $ 263,174 Other Current Assets$ 265,730 $ 312,219 Total Current Assets$ 924,029 $ 772,643 Long Term Assets Property, Plant, and Equipment$ 2,434,712 $ 2,077,759 Less Accumulated Depreciation and Amortization$ (1,049,810)$ (812,003)Net Property, Plant, and Equipment$ 1,384,902 $ 1,265,756 Other Long-Term Assets$ 420,815 $ 175,993 Total Long-Term Assets$ 1,805,717 $ 1,441,749 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable$ 168,984 $ 135,994 Short-Term Debt$ 722 $ 710 Other Current Liabilities$ 438,997 $ 325,891 Total Current Liabilities$ 608,703 $ 462,595 Long-Term Liabilities Long-Term Debt$ 4,354 $ 5,076 Deferred Income Taxes$ 33,217 $ 22,496 Other Long-Term Liabilities$ 1,045 $ 1,036 Total Long-Term Liabilities$ 38,616 $ 28,608 Total Liabilities$ 647,319 $ 491,203 Shareholders Equity Preferred Stock$ - $ - Common Stock (393,692,536 in Year 2; 388,328,592 in Year 1)$ 973,351 $ 882,459 Additional Paid-in Capital$ 39,393 $ 39,393 Retained Earnings$ 1,069,683 $ 801,337 Total Stockholder's Equity$ 2,082,427 $ 1,723,189

Year 2Year 1 Jan. 1 - Dec. 31Jan. 1 - Dec. 31 (in thousands) Net Sales$ 4,075,522 $ 3,288,908 Cost of Goods Sold$ 1,685,928 $ 1,350,011 Gross Profit$ 2,389,594 $ 1,938,897 Selling, General & Administrative Expenses$ 1,765,470 $ 1,450,447 Depreciation & Amortization Expenses$ 237,807 $ 205,557 Operating Income$ 386,317 $ 282,893 Interest Income (Expense)$ - $ - Other Non-Operating Income (Expense)$ 50,018 $ 56,106 Income before Income Taxes$ 436,335 $ 338,999 Income Tax Expense$ 167,989 $ 126,313 Net Income after Taxes$ 268,346 $ 212,686 Gain (Loss) from Non-Recurring Activities$ - $ - Net Income$ 268,346 $ 212,686

PART 1 - Calculate and Interpret Basic Accounting Ratios In this part of the course project, you will calculate one financial ratio from each of the three categories you learned about in Module 2 of the course (Liquidity, Profitability, and Efficiency) so that you can better understand Astrobucks performance.

To complete this part of the project you will need to refer to the balance sheet and income statement in part one, and use the data to complete each of the three sections below. You will be identifying the ratio using Year 1 of financial performance. Note that some ratios require you to know Astrobucks Year 0 financial information, and so for this part of the project, assume that their Year 0 Accounts Receivable was $78,553, that their Year 0 Inventory was $242,247, and that their Year 0 Accounts Payable was $120,552.

PART 2 - PART THREE Examine Financial Trends in Business Organizations In this part of the course project, you will examine financial data across multiple years in order to discover a financial trend in Astrobucks performance.

To complete this part of the project you will need to again consult the balance sheet and income statement that you examined in Part One. In Part Two of the project, you calculated three sets of ratios for one year of Astrobucks performance. In Part Three of the course project, you will calculate the same three ratios for the following year in order to discover a trend in their performance over time. For each type of ratio, you will calculate the ratio and identify the trend (if any) that the financial performance shows.

A. Write a paragraph that answers the following questions: is there a trend from Year 1 to Year 2 that you uncovered for the Liquidity Ratio? Why or why not? What is the trend and what does it mean? Is the trend positive, or negative, and how can you tell?

B. Write a paragraph that answers the following questions: is there a trend from Year 1 to Year 2 that you uncovered for the Profitability Ratio? Why or why not? What is the trend and what does it mean? Is the trend positive, or negative, and how can you tell?

C. Write a paragraph that answers the following questions: is there a trend from Year 1 to Year 2 that you uncovered for the Efficiency Ratio? Why or why not? What is the trend and what does it mean? Is the trend positive, or negative, and how can you tell?

Use the below formulas for calculations -

Liquidity Current Ratio = Current Asset / Current Liabilities Quick Ratio = Cash equivalence + Marketable securities + Accounts receivable / Current liabilitiesDebt-to-Equity Ratio = Short term debt + Long term debt + Other fixed payments / Shareholder equity* [*Shareholder equity = Total assets - Total liabilities] Profitability Return on Sales Ratio = Operating Profit* / Net Sales [*Operating Profit = Gross Profit - Total Operating Expenses]Return on Equity Ratio = Net annual income* / Shareholders equity** [*Net annual income = Gross income - Expenses **Shareholders equity = Total assets - Total liabilities]Earnings per Share = Net income - Preferred dividends /Weighted average shares outstanding* [ *Weighted average shares outstanding = (Outstanding shares Number o reporting periods) / Number o reporting periods ] EfficiencyInventory Turnover Ratio = Cost of goods sold / Average Inventory [* Average Invetory =( Beignning invetory + Ending inventory) /2]Accounts Receivable Turnover Ratio = Net credit sales* /Average accounts receivable** [*Net credit sales = Gross credit sales - Returns **Average accounts receivable = Beginning accounts receivable + Ending accounts receivable]Accounts Payable Turnover Ratio = Net credit purchases* / Average accounts payable** [*Net credit purchases = COGS + Ending inventory Starting inventory **Average accounts payable = (Beginning accounts payable + Ending accounts payable) /2]

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