drake CORPORATION drake CORPORATION Statement of Financial Position Statement of Comprehensive Income 2015 2016 2015 2016 Net Sales 12,060,000 16,700,000 Cash and Cash Equivalents $ 990,000.00 $ 950,000.00 Other Operating Revenues 16,000 19,000 Short Term Marketable Securities $ 10,000.00 $ 15,000.00 Total Revenues 12,076,000 16,719,000 Accounts Receivable $ 1,020,000.00 $ 1,550,000.00 Cost of Goods Sold (4,950,000) (7,050,000) Inventory $ 1,005,000.00 $ 1,360,000.00 Other Operating Expenses (11,000) (13,000) Other Current Assets $ 870,000.00 $ 1,150,000.00 Total Direct Expenses (4,961,000) (7,063,000) Total Current Assets $ 3,895,000.00 $ 5,025,000.00 Selling, General & Administrative (3,300,000) (3,880,000) Operating Income 3,815,000 5,776,000 Fixed Assets $ 14,006,000.00 $ 17,605,000.00 Accumulated Depreciation $ -1,280,000.00 $ -1,700,000.00 Interest Expenses (117,000) (122,000) Net Fixed Assets $ 12,726,000.00 $ 15,905,000.00 Foreign Exchange (Loss) Gain 0 0 Longterm Investments $ 360,000.00 $ 320,000.00 Associated Company (Loss) Gain 0 0 Investments in Other Companies $ 65,000.00 $ - Other NonOperating (Loss) Gain 0 17,000 Intangibles and Other Assets $ 100,000.00 $ 110,000.00 Income Tax Expense (790,000) (1,005,000) Total Non Current Assets $ 13,251,000.00 $ 16,335,000.00 Reserve Charges 0 0 Total Assets $ 17,146,000.00 $ 21,360,000.00 EBITDA 3,815,000 5,776,000 Accounts Payable $ 2,050,000.00 $ 3,150,000.00 EBITDA (Loss) Gain 0 0 Short Term Borrowings $ 1,200,000.00 $ 1,830,000.00 Tax Expenses 0 0 Short Term Portion of LT Debt $ 12,000.00 $ 15,000.00 Retained Earnings 170,000 302,000 Other Current Liabilities $ 1,050,000.00 $ 1,250,000.00 Net Income 3,815,000 5,776,000 Total Current Liabilities $ 4,312,000.00 $ 6,245,000.00 Longterm Debt / Borrowings $ 1,160,000.00 $ 1,750,000.00 Other Longterm Liabilities $ 650,000.00 $ 750,000.00 Total Non Current Liabilities $ 1,810,000.00 $ 2,500,000.00 Total Liabilities $ 6,122,000.00 $ 8,745,000.00 Preferred Equity - - Common Equity $ 2,044,000.00 $ 2,005,000.00 Additional Paid in Capital $ 5,013,000.00 $ 4,900,000.00 Retained Earnings $ 5,097,000.00 $ 7,050,000.00 Additional Paid in Capital $ 275,000.00 $ 120,000.00 Treasury Stock $ -1,405,000.00 $ -1,460,000.00 Total Shareholder Equity $ 11,024,000.00 $ 12,615,000.00 Total Liabilities & Equity $ 17,146,000.00 $ 21,360,000.00 FINANCIAL STATEMENT ANALYSIS DATA INFORMATION *USE THE DATA BELOW FOR THE CREATION OF RATIO ANALYSIS ONLY answer Compute the following financial ratio analysis using the data above. 1. Prepare a vertical analysis for the Statement of Income and Statement of Financial Position for years 2019 and 2020. (1 decimal place) 2. Give insights or interpreting the results of the vertical analysis made. 3. Prepare a horizontal analysis for the Statement of Income and Statement of Financial Position for year 2019 and 2020. (1 decimal place)

drake CORPORATION drake CORPORATION Statement of Financial Position Statement of Comprehensive Income 2015 2016 2015 2016 Net Sales 12,060,000 16,700,000 Cash and Cash Equivalents $ 990,000.00 $ 950,000.00 Other Operating Revenues 16,000 19,000 Short Term Marketable Securities $ 10,000.00 $ 15,000.00 Total Revenues 12,076,000 16,719,000 Accounts Receivable $ 1,020,000.00 $ 1,550,000.00 Cost of Goods Sold (4,950,000) (7,050,000) Inventory $ 1,005,000.00 $ 1,360,000.00 Other Operating Expenses (11,000) (13,000) Other Current Assets $ 870,000.00 $ 1,150,000.00 Total Direct Expenses (4,961,000) (7,063,000) Total Current Assets $ 3,895,000.00 $ 5,025,000.00 Selling, General & Administrative (3,300,000) (3,880,000) Operating Income 3,815,000 5,776,000 Fixed Assets $ 14,006,000.00 $ 17,605,000.00 Accumulated Depreciation $ -1,280,000.00 $ -1,700,000.00 Interest Expenses (117,000) (122,000) Net Fixed Assets $ 12,726,000.00 $ 15,905,000.00 Foreign Exchange (Loss) Gain 0 0 Longterm Investments $ 360,000.00 $ 320,000.00 Associated Company (Loss) Gain 0 0 Investments in Other Companies $ 65,000.00 $ - Other NonOperating (Loss) Gain 0 17,000 Intangibles and Other Assets $ 100,000.00 $ 110,000.00 Income Tax Expense (790,000) (1,005,000) Total Non Current Assets $ 13,251,000.00 $ 16,335,000.00 Reserve Charges 0 0 Total Assets $ 17,146,000.00 $ 21,360,000.00 EBITDA 3,815,000 5,776,000 Accounts Payable $ 2,050,000.00 $ 3,150,000.00 EBITDA (Loss) Gain 0 0 Short Term Borrowings $ 1,200,000.00 $ 1,830,000.00 Tax Expenses 0 0 Short Term Portion of LT Debt $ 12,000.00 $ 15,000.00 Retained Earnings 170,000 302,000 Other Current Liabilities $ 1,050,000.00 $ 1,250,000.00 Net Income 3,815,000 5,776,000 Total Current Liabilities $ 4,312,000.00 $ 6,245,000.00 Longterm Debt / Borrowings $ 1,160,000.00 $ 1,750,000.00 Other Longterm Liabilities $ 650,000.00 $ 750,000.00 Total Non Current Liabilities $ 1,810,000.00 $ 2,500,000.00 Total Liabilities $ 6,122,000.00 $ 8,745,000.00 Preferred Equity - - Common Equity $ 2,044,000.00 $ 2,005,000.00 Additional Paid in Capital $ 5,013,000.00 $ 4,900,000.00 Retained Earnings $ 5,097,000.00 $ 7,050,000.00 Additional Paid in Capital $ 275,000.00 $ 120,000.00 Treasury Stock $ -1,405,000.00 $ -1,460,000.00 Total Shareholder Equity $ 11,024,000.00 $ 12,615,000.00 Total Liabilities & Equity $ 17,146,000.00 $ 21,360,000.00 FINANCIAL STATEMENT ANALYSIS DATA INFORMATION *USE THE DATA BELOW FOR THE CREATION OF RATIO ANALYSIS ONLY answer Compute the following financial ratio analysis using the data above. 1. Prepare a vertical analysis for the Statement of Income and Statement of Financial Position for years 2019 and 2020. (1 decimal place) 2. Give insights or interpreting the results of the vertical analysis made. 3. Prepare a horizontal analysis for the Statement of Income and Statement of Financial Position for year 2019 and 2020. (1 decimal place)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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drake CORPORATION		drake CORPORATION
Statement of Financial Position		Statement of Comprehensive Income
	2015	2016		2015	2016
			Net Sales	12,060,000	16,700,000
Cash and Cash Equivalents	$ 990,000.00	$ 950,000.00	Other Operating Revenues	16,000	19,000
Short Term Marketable Securities	$ 10,000.00	$ 15,000.00	Total Revenues	12,076,000	16,719,000
Accounts Receivable	$ 1,020,000.00	$ 1,550,000.00	Cost of Goods Sold	(4,950,000)	(7,050,000)
Inventory	$ 1,005,000.00	$ 1,360,000.00	Other Operating Expenses	(11,000)	(13,000)
Other Current Assets	$ 870,000.00	$ 1,150,000.00	Total Direct Expenses	(4,961,000)	(7,063,000)
Total Current Assets	$ 3,895,000.00	$ 5,025,000.00	Selling, General & Administrative	(3,300,000)	(3,880,000)
			Operating Income	3,815,000	5,776,000
Fixed Assets	$ 14,006,000.00	$ 17,605,000.00
Accumulated Depreciation	$ -1,280,000.00	$ -1,700,000.00	Interest Expenses	(117,000)	(122,000)
Net Fixed Assets	$ 12,726,000.00	$ 15,905,000.00	Foreign Exchange (Loss) Gain	0	0
Longterm Investments	$ 360,000.00	$ 320,000.00	Associated Company (Loss) Gain	0	0
Investments in Other Companies	$ 65,000.00	$ -	Other NonOperating (Loss) Gain	0	17,000
Intangibles and Other Assets	$ 100,000.00	$ 110,000.00	Income Tax Expense	(790,000)	(1,005,000)
Total Non Current Assets	$ 13,251,000.00	$ 16,335,000.00	Reserve Charges	0	0
Total Assets	$ 17,146,000.00	$ 21,360,000.00	EBITDA	3,815,000	5,776,000

Accounts Payable	$ 2,050,000.00	$ 3,150,000.00	EBITDA (Loss) Gain	0	0
Short Term Borrowings	$ 1,200,000.00	$ 1,830,000.00	Tax Expenses	0	0
Short Term Portion of LT Debt	$ 12,000.00	$ 15,000.00	Retained Earnings	170,000	302,000
Other Current Liabilities	$ 1,050,000.00	$ 1,250,000.00	Net Income	3,815,000	5,776,000
Total Current Liabilities	$ 4,312,000.00	$ 6,245,000.00

Longterm Debt / Borrowings	$ 1,160,000.00	$ 1,750,000.00
Other Longterm Liabilities	$ 650,000.00	$ 750,000.00
Total Non Current Liabilities	$ 1,810,000.00	$ 2,500,000.00
Total Liabilities	$ 6,122,000.00	$ 8,745,000.00

Preferred Equity	-	-
Common Equity	$ 2,044,000.00	$ 2,005,000.00
Additional Paid in Capital	$ 5,013,000.00	$ 4,900,000.00
Retained Earnings	$ 5,097,000.00	$ 7,050,000.00
Additional Paid in Capital	$ 275,000.00	$ 120,000.00
Treasury Stock	$ -1,405,000.00	$ -1,460,000.00
Total Shareholder Equity	$ 11,024,000.00	$ 12,615,000.00

Total Liabilities & Equity	$ 17,146,000.00	$ 21,360,000.00

FINANCIAL STATEMENT ANALYSIS

DATA INFORMATION

*USE THE DATA BELOW FOR THE CREATION OF RATIO ANALYSIS ONLY

answer

	Compute the following financial ratio analysis using the data above.
	1. Prepare a vertical analysis for the Statement of Income and Statement of Financial Position for years 2019 and 2020. (1 decimal place)
	2. Give insights or interpreting the results of the vertical analysis made.
	3. Prepare a horizontal analysis for the Statement of Income and Statement of Financial Position for year 2019 and 2020. (1 decimal place)
	4. Give insights or interpreting the results of the horizontal analysis made
	5. Compute the following financial ratios and interpreting the results: (1 decimal place)
	a. current ratio
	b. quick ratio
	c. receivable turnover
	d. age of receivables
	e. inventory turnover
	f. age of inventory
	g. asset turnover
	h. fixed asset turnover
	i. times interest earned
	j. debt ratio
	k. equity ratio
	l. debt to equity ratio
	m. gross profit margin
	n. return on equity
	o. return on assets

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