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Year Current Assets 726,520 380,000 Current Liabilities 210,000 200,000 2021 Ratio 516,520 *Example 180,000 2020 Year 2021 2020 726,520 380,000 210,000 200,000 3.46 1.90 2021 2020 526,520 260,000 210,000 200,000 2.51 1.30 2021 1,600,000 165,000 9.70 Working Capital $ 5 1 Current Ratio 3 9 10 Quick Ratio 111 12 13 Account Receivable Turnover 14 15 Number of Days Sales in Receivables 16 17 Inventory Turnover 18 19 Number of Days Sales in Inventory 20 21 Ratio of Liabilities to S/E 22 23 24 Return on Total Assets 25 2021 365 9.70 37.63 2021 1,040,000 100,000 10.40 2021 365 10.40 35.10 2021 2020 290,000 300,000 616,520 300,000 0.47 1.00 2021 $303,050 753,260 0.40 2021 26 Return on SE 27 295,050 458,260 0.64385 2021 28 Earnings per share 29 30 295,050 105,000 150,000 100,000 1.97 1.05 2020 Write the memo using as many ratios as possible to support your answers. For example I would look at the vertical analysis and horizontal analysis for cash and then use that information to determine what was happening to the current ratio, working capital and quick ratio to determine if this was a strength or weakness. By incorporating as many ratios as possible you support your reasoning if this is a weakness or a strength. This also tells me if you understand what the ratios are telling you. 2021 2020 Assets Pete Paydirt's Patriotic Flags Cash Accounts Receivable, net Merchandise Inventory Prepaid Rent Total Current Assets 366,520 160,000 130,000 70,000 $726,520 90,000 170,000 70,000 50,000 $380,000 307% -6% 86% 40% 91% Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, Plant, and Equipment Total Assets 240,000 -60,000 $180,000 $906,520 260,000 -40,000 $220,000 $600,000 -8% 50% -18% 5196 2021 2020 90,000 55,000 64% Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Dividends Payable Unearned Revenue Salaries Payable Federal Income Taxes Payable Total Current Liabilities 20,000 70,000 30,000 $210,000 80,000 50,000 15,000 $200,000 -75% 40% 100% 5% $100,000 -80% $20,000 $60,000 $80,000 $290,000 $100,000 $300,000 -20% -394 Long Term Liabilities Bond Payable Note Payable Total Long-Term Liabilities Total Liabilities Stockholders' Equity Common Stock, $10 Par Paid In Capital in Excess of Par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 150,000 15,000 451,520 $616,520 $906,520 $100,000 10,000 $190,000 $300,000 $600,000 50% SOX 138% 106% 51% Vertical Analysis Vertical Analysis 2021 2020 1,600,000 100.00% 940,000 1,040,000 65.00% 693,000 $560,000 35.00% $247,000 0.00% 80,000 5.00% 50,000 20,000 1.25% 20,000 30,000 1.88% 24,000 $130,000 8.13% $94,000 $430,000 26.88% $153,000 -500 -0.03% -8,000 -0.50% -3,000 -8,500 -0.53% -3,000 421,500 26.34% 150,000 - 126,450 -7.90% -45,000 $295,050 18.44% $105,000 100.00% 73.72% 26.28% 0.00% 5.32% 2.13% 2.55% 10.00% 16.28% #VALUE! -0.32% -0.32% 15.96% -4.79% 11.17% Ver Analyse Ver Analova 2001 2020 1000 23123 2.2K CEDON TIN 46 47 48 49 Sales 50 Cost of Goods Sold 51 Gross Marin 52 Operating Expenses 53 Salaries and Wages Expense 54 Rent Expense 55 Depreciation Expense 56 57 Income from Operations 58 Loss on sale of Equipment 59 Interest Expense 60 61 income before Taxes 62 Federal Income Taxes 63 Net Income 64 Total Operating Expenses 1,600,000 100.00 940,000 1,040.000 65.COM 61.000 $560,000 15.00 $247.000 0.00 80.000 SOON 50.000 20,000 125 70,000 30,000 24.000 $130,000 813 594,000 $430,000 26. $153.000 500 - 18.000 OSON 3,000 OS 421,500 264 150,000 12 -7.90 45.000 $295,050 18 5105,000 12 VALUE 02 03 15 increase (Decrease in Operating Income 111 Year Current Assets 726,520 380,000 Current Liabilities 210,000 200,000 2021 Ratio 516,520 *Example 180,000 2020 Year 2021 2020 726,520 380,000 210,000 200,000 3.46 1.90 2021 2020 526,520 260,000 210,000 200,000 2.51 1.30 2021 1,600,000 165,000 9.70 Working Capital $ 5 1 Current Ratio 3 9 10 Quick Ratio 111 12 13 Account Receivable Turnover 14 15 Number of Days Sales in Receivables 16 17 Inventory Turnover 18 19 Number of Days Sales in Inventory 20 21 Ratio of Liabilities to S/E 22 23 24 Return on Total Assets 25 2021 365 9.70 37.63 2021 1,040,000 100,000 10.40 2021 365 10.40 35.10 2021 2020 290,000 300,000 616,520 300,000 0.47 1.00 2021 $303,050 753,260 0.40 2021 26 Return on SE 27 295,050 458,260 0.64385 2021 28 Earnings per share 29 30 295,050 105,000 150,000 100,000 1.97 1.05 2020 Write the memo using as many ratios as possible to support your answers. For example I would look at the vertical analysis and horizontal analysis for cash and then use that information to determine what was happening to the current ratio, working capital and quick ratio to determine if this was a strength or weakness. By incorporating as many ratios as possible you support your reasoning if this is a weakness or a strength. This also tells me if you understand what the ratios are telling you. 2021 2020 Assets Pete Paydirt's Patriotic Flags Cash Accounts Receivable, net Merchandise Inventory Prepaid Rent Total Current Assets 366,520 160,000 130,000 70,000 $726,520 90,000 170,000 70,000 50,000 $380,000 307% -6% 86% 40% 91% Property, Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, Plant, and Equipment Total Assets 240,000 -60,000 $180,000 $906,520 260,000 -40,000 $220,000 $600,000 -8% 50% -18% 5196 2021 2020 90,000 55,000 64% Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Dividends Payable Unearned Revenue Salaries Payable Federal Income Taxes Payable Total Current Liabilities 20,000 70,000 30,000 $210,000 80,000 50,000 15,000 $200,000 -75% 40% 100% 5% $100,000 -80% $20,000 $60,000 $80,000 $290,000 $100,000 $300,000 -20% -394 Long Term Liabilities Bond Payable Note Payable Total Long-Term Liabilities Total Liabilities Stockholders' Equity Common Stock, $10 Par Paid In Capital in Excess of Par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 150,000 15,000 451,520 $616,520 $906,520 $100,000 10,000 $190,000 $300,000 $600,000 50% SOX 138% 106% 51% Vertical Analysis Vertical Analysis 2021 2020 1,600,000 100.00% 940,000 1,040,000 65.00% 693,000 $560,000 35.00% $247,000 0.00% 80,000 5.00% 50,000 20,000 1.25% 20,000 30,000 1.88% 24,000 $130,000 8.13% $94,000 $430,000 26.88% $153,000 -500 -0.03% -8,000 -0.50% -3,000 -8,500 -0.53% -3,000 421,500 26.34% 150,000 - 126,450 -7.90% -45,000 $295,050 18.44% $105,000 100.00% 73.72% 26.28% 0.00% 5.32% 2.13% 2.55% 10.00% 16.28% #VALUE! -0.32% -0.32% 15.96% -4.79% 11.17% Ver Analyse Ver Analova 2001 2020 1000 23123 2.2K CEDON TIN 46 47 48 49 Sales 50 Cost of Goods Sold 51 Gross Marin 52 Operating Expenses 53 Salaries and Wages Expense 54 Rent Expense 55 Depreciation Expense 56 57 Income from Operations 58 Loss on sale of Equipment 59 Interest Expense 60 61 income before Taxes 62 Federal Income Taxes 63 Net Income 64 Total Operating Expenses 1,600,000 100.00 940,000 1,040.000 65.COM 61.000 $560,000 15.00 $247.000 0.00 80.000 SOON 50.000 20,000 125 70,000 30,000 24.000 $130,000 813 594,000 $430,000 26. $153.000 500 - 18.000 OSON 3,000 OS 421,500 264 150,000 12 -7.90 45.000 $295,050 18 5105,000 12 VALUE 02 03 15 increase (Decrease in Operating Income 111

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