Students will analyze financial statements ratios and the relevance of the ratios for benchmarking, Instructions This assignment uses Case Study #2. This is a group assi
Students will analyze financial statements ratios and the relevance of the ratios for benchmarking,
Instructions
This assignment uses Case Study #2.
This is a group assignment. Please go to People > Groups > Case Study #2 to sign up for a group. One group consists of no more than FOUR people. All group members will receive the same grade. If someone in the group didn't contribute, the other group members will need to email me to explain the situation.
Your submission should clearly list the financial ratios and their calculation detail. More importantly, you are expected to provide analysis on how to interpret the ratio results and how they are compared with the industry benchmarks.
Each group may choose the group discussion panel or email as a tool to communicate with each other.
Please give a detailed analysis of the financial statements given below for Joshua & White Technologies. Your analysis should include answers to the questions as follows (not limited to these questions):
· Has the company’s liquidity position improved or worsened? How’s it compared with the industry average?
· Has the company’s ability to manage its assets improved or worsened? How’s it compared with the industry average?
· How has the company’s profitability changed during the last year? How’s it compared with the industry average?
Note: you may need to research on the industry average on financial ratios for Information Technology companies.
|
Joshua & White Technologies: December 31 Balance Sheets |
||||
|
(Thousands of Dollars) |
||||
|
Assets |
2019 |
2018 |
||
|
Cash and cash equivalents |
$21,000 |
$20,000 |
||
|
Short-term investments |
3,759 |
3,240 |
||
|
Accounts Receivable |
52,500 |
48,000 |
||
|
Inventories |
84,000 |
56,000 |
||
|
Total current assets |
$161,259 |
$127,240 |
||
|
Net fixed assets |
223,097 |
200,000 |
||
|
Total assets |
$384,356 |
$327,240 |
||
|
Liabilities and equity |
||||
|
Accounts payable |
$33,600 |
$32,000 |
||
|
Accruals |
12,600 |
12,000 |
||
|
Notes payable |
19,929 |
6,480 |
||
|
Total current liabilities |
$66,129 |
$50,480 |
||
|
Long-term debt |
67,662 |
58,320 |
||
|
Total liabilities |
$133,791 |
$108,800 |
||
|
Common stock |
178,440 |
178,440 |
||
|
Retained Earnings |
72,125 |
40,000 |
||
|
Total common equity |
$250,565 |
$218,440 |
||
|
Total liabilities and equity |
$384,356 |
$327,240 |
||
|
Joshua & White Technologies December 31 Income Statements |
||||
|
(Thousands of Dollars) |
||||
|
2019 |
2018 |
|||
|
Sales |
$420,000 |
$400,000 |
||
|
COGS except excluding depr. and amort. |
300,000 |
298,000 |
||
|
Depreciation and Amortization |
19,660 |
18,000 |
||
|
Other operating expenses |
27,600 |
22,000 |
||
|
EBIT |
$72,740 |
$62,000 |
||
|
Interest Expense |
5,740 |
4,460 |
||
|
EBT |
$67,000 |
$57,540 |
||
|
Taxes (25%) |
16,750 |
14,385 |
||
|
Net Income |
$50,250 |
$43,155 |
||
|
Common dividends |
$18,125 |
$17,262 |
||
|
Addition to retained earnings |
$32,125 |
$25,893 |
||
|
Other Data |
2019 |
2018 |
||
|
Year-end Stock Price |
$90.00 |
$96.00 |
||
|
# of shares (Thousands) |
4,052 |
4,000 |
||
|
Lease payment (Thousands of Dollars) |
$20,000 |
$20,000 |
||
|
Sinking fund payment (Thousands of Dollars) |
$5,000 |
$5,000 |
Who We Are
We are a professional custom writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework.
Do you handle any type of coursework?
Yes. We have posted over our previous orders to display our experience. Since we have done this question before, we can also do it for you. To make sure we do it perfectly, please fill our Order Form. Filling the order form correctly will assist our team in referencing, specifications and future communication.
Is it hard to Place an Order?
1. Click on the “Place order tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
2. Fill in your paper’s requirements in the "PAPER INFORMATION" section and click “PRICE CALCULATION” at the bottom to calculate your order price.
3. Fill in your paper’s academic level, deadline and the required number of pages from the drop-down menus.
4. Click “FINAL STEP” to enter your registration details and get an account with us for record keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
5. From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.
Need help with this assignment?
Order it here claim 25% discount
Discount Code: SAVE25