Write a 100 word analysis on your overall interpretation of the financial health of the company below. Include if you would recommend investing in this company and explain your reasoning. Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Total Revenue $31,536,000 $24,578,000 $21,461,000 $11,759,000 Cost of Revenue $24,906,000 $20,509,000 $17,419,000 $9,536,000 Gross Profit $6,630,000 $4,069,000 $4,042,000 $2,223,000 Operating Expenses Research and Development $1,491,000 $1,343,000 $1,460,000 $1,378,000 Sales, General and Admin. $3,145,000 $2,646,000 $2,835,000 $2,477,000 Non-Recurring Items -- $149,000 $135,000 -- Other Operating Items -- -- -- -- Operating Income $1,994,000 -$69,000 -$388,000 -$1,632,000 Add'l income/expense items -$92,000 $89,000 $46,000 -$106,000 Earnings Before Interest and Tax $1,902,000 $20,000 -$342,000 -$1,738,000 Interest Expense $748,000 $685,000 $663,000 $471,000 Earnings Before Tax $1,154,000 -$665,000 -$1,005,000 -$2,209,000 Income Tax $292,000 $110,000 $58,000 $32,000 Minority Interest -- -- -- -- Equity Earnings/Loss Unconsolidated Subsidiary -$172,000 -$95,000 $87,000 $279,000 Net Income-Cont. Operations $690,000 -$870,000 -$976,000 -$1,962,000 Net Income $690,000 -$870,000 -$976,000 -$1,962,000 Net Income Applicable to Common Shareholders $690,000 -$870,000 -$976,000 -$1,962,000 Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Current Assets Cash and Cash Equivalents $19,384,000 $6,268,000 $3,879,000 $3,523,237 Short-Term Investments -- -- -- -- Net Receivables $1,886,000 $1,324,000 $949,000 $515,381 Inventory $4,101,000 $3,552,000 $3,113,000 $2,263,537 Other Current Assets $1,346,000 $959,000 $366,000 $268,365 Total Current Assets $26,717,000 $12,103,000 $8,307,000 $6,570,520 Long-Term Assets Long-Term Investments -- -- $422,000 $456,652 Fixed Assets $17,396,000 $14,061,000 $13,420,000 $14,144,126 Goodwill $207,000 $198,000 $68,000 $60,237 Intangible Assets $313,000 $339,000 $282,000 $361,502 Other Assets $7,515,000 $7,608,000 $7,241,000 $7,062,335 Deferred Asset Charges -- -- -- -- Total Assets $52,148,000 $34,309,000 $29,740,000 $28,655,372 Current Liabilities Accounts Payable $9,906,000 $6,993,000 $5,499,000 $4,121,616 Short-Term Debt / Current Portion of Long-Term Debt $2,132,000 $1,785,000 $2,568,000 $896,549 Other Current Liabilities $2,210,000 $1,889,000 $1,926,000 $2,656,505 Total Current Liabilities $14,248,000 $10,667,000 $9,993,000 $7,674,670 Long-Term Debt $9,556,000 $11,634,000 $9,404,000 $9,418,319 Other Liabilities $3,330,000 $2,691,000 $3,039,000 $4,752,192 Deferred Liability Charges $1,284,000 $1,207,000 $991,000 $1,177,799 Misc. Stocks $850,000 $849,000 $834,000 $997,346 Minority Interest $655,000 $643,000 $556,000 $397,804 Total Liabilities $29,268,000 $27,048,000 $24,261,000 $24,020,326 Stock Holders Equity Common Stocks $1,000 $1,000 -- $169 Capital Surplus -$5,399,000 -$6,083,000 -$5,318,000 -$4,974,299 Retained Earnings -- -- -- -- Treasury Stock $27,260,000 $12,736,000 $10,249,000 $9,178,024 Other Equity $363,000 -$36,000 -$8,000 $33,348 Total Equity $22,225,000 $6,618,000 $4,923,000 $4,237,242 Total Liabilities & Equity $52,148,000 $34,309,000 $29,740,000 $28,655,372 Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Net Income $690,000 -$870,000 -$976,000 -$1,962,000 Cash Flows-Operating Activities Depreciation $2,502,000 $2,342,000 $2,060,000 $1,727,000 Net Income Adjustments $2,395,000 $1,187,000 $1,043,000 $950,000 Changes in Operating Activities Accounts Receivable -$652,000 -$367,000 -$497,000 -$25,000 Changes in Inventories -$422,000 -$429,000 -$1,023,000 -$179,000 Other Operating Activities -$1,667,000 -$937,000 -$504,000 -$1,610,000 Liabilities $2,925,000 $1,384,000 $2,082,000 $1,317,000 Net Cash Flow-Operating $5,943,000 $2,405,000 $2,098,000 -$61,000 Cash Flows-Investing Activities Capital Expenditures -$3,232,000 -$1,432,000 -$2,319,000 -$4,081,000 Investments -- -- -- -- Other Investing Activities $100,000 -$4,000 -$18,000 -$115,000 Net Cash Flows-Investing -$3,132,000 -$1,436,000 -$2,337,000 -$4,196,000 Cash Flows-Financing Activities Sale and Purchase of Stock $12,675,000 $1,555,000 $727,000 $1,272,000 Net Borrowings -$2,488,000 $798,000 $89,000 $3,385,000 Other Financing Activities -- -- -- -- Net Cash Flows-Financing $9,973,000 $1,529,000 $574,000 $4,415,000 Effect of Exchange Rate $334,000 $8,000 -$23,000 $40,000 Net Cash Flow $13,118,000 $2,506,000 $312,000 $198,000 Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Liquidity Ratios Current Ratio 188% 113% 83% 86% Quick Ratio 159% 80% 52% 56% Cash Ratio 136% 59% 39% 46% Profitability Ratios Gross Margin 21% 17% 19% 19% Operating Margin 6% 0% 0% 0% Pre-Tax Margin 4% 0% 0% 0% Profit Margin 2% 0% 0% 0% Pre-Tax ROE 5% 0% 0% 0% After Tax ROE 3% 0% 0% 0%

Write a 100 word analysis on your overall interpretation of the financial health of the company below. Include if you would recommend investing in this company and explain your reasoning. Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Total Revenue $31,536,000 $24,578,000 $21,461,000 $11,759,000 Cost of Revenue $24,906,000 $20,509,000 $17,419,000 $9,536,000 Gross Profit $6,630,000 $4,069,000 $4,042,000 $2,223,000 Operating Expenses Research and Development $1,491,000 $1,343,000 $1,460,000 $1,378,000 Sales, General and Admin. $3,145,000 $2,646,000 $2,835,000 $2,477,000 Non-Recurring Items -- $149,000 $135,000 -- Other Operating Items -- -- -- -- Operating Income $1,994,000 -$69,000 -$388,000 -$1,632,000 Add'l income/expense items -$92,000 $89,000 $46,000 -$106,000 Earnings Before Interest and Tax $1,902,000 $20,000 -$342,000 -$1,738,000 Interest Expense $748,000 $685,000 $663,000 $471,000 Earnings Before Tax $1,154,000 -$665,000 -$1,005,000 -$2,209,000 Income Tax $292,000 $110,000 $58,000 $32,000 Minority Interest -- -- -- -- Equity Earnings/Loss Unconsolidated Subsidiary -$172,000 -$95,000 $87,000 $279,000 Net Income-Cont. Operations $690,000 -$870,000 -$976,000 -$1,962,000 Net Income $690,000 -$870,000 -$976,000 -$1,962,000 Net Income Applicable to Common Shareholders $690,000 -$870,000 -$976,000 -$1,962,000 Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Current Assets Cash and Cash Equivalents $19,384,000 $6,268,000 $3,879,000 $3,523,237 Short-Term Investments -- -- -- -- Net Receivables $1,886,000 $1,324,000 $949,000 $515,381 Inventory $4,101,000 $3,552,000 $3,113,000 $2,263,537 Other Current Assets $1,346,000 $959,000 $366,000 $268,365 Total Current Assets $26,717,000 $12,103,000 $8,307,000 $6,570,520 Long-Term Assets Long-Term Investments -- -- $422,000 $456,652 Fixed Assets $17,396,000 $14,061,000 $13,420,000 $14,144,126 Goodwill $207,000 $198,000 $68,000 $60,237 Intangible Assets $313,000 $339,000 $282,000 $361,502 Other Assets $7,515,000 $7,608,000 $7,241,000 $7,062,335 Deferred Asset Charges -- -- -- -- Total Assets $52,148,000 $34,309,000 $29,740,000 $28,655,372 Current Liabilities Accounts Payable $9,906,000 $6,993,000 $5,499,000 $4,121,616 Short-Term Debt / Current Portion of Long-Term Debt $2,132,000 $1,785,000 $2,568,000 $896,549 Other Current Liabilities $2,210,000 $1,889,000 $1,926,000 $2,656,505 Total Current Liabilities $14,248,000 $10,667,000 $9,993,000 $7,674,670 Long-Term Debt $9,556,000 $11,634,000 $9,404,000 $9,418,319 Other Liabilities $3,330,000 $2,691,000 $3,039,000 $4,752,192 Deferred Liability Charges $1,284,000 $1,207,000 $991,000 $1,177,799 Misc. Stocks $850,000 $849,000 $834,000 $997,346 Minority Interest $655,000 $643,000 $556,000 $397,804 Total Liabilities $29,268,000 $27,048,000 $24,261,000 $24,020,326 Stock Holders Equity Common Stocks $1,000 $1,000 -- $169 Capital Surplus -$5,399,000 -$6,083,000 -$5,318,000 -$4,974,299 Retained Earnings -- -- -- -- Treasury Stock $27,260,000 $12,736,000 $10,249,000 $9,178,024 Other Equity $363,000 -$36,000 -$8,000 $33,348 Total Equity $22,225,000 $6,618,000 $4,923,000 $4,237,242 Total Liabilities & Equity $52,148,000 $34,309,000 $29,740,000 $28,655,372 Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Net Income $690,000 -$870,000 -$976,000 -$1,962,000 Cash Flows-Operating Activities Depreciation $2,502,000 $2,342,000 $2,060,000 $1,727,000 Net Income Adjustments $2,395,000 $1,187,000 $1,043,000 $950,000 Changes in Operating Activities Accounts Receivable -$652,000 -$367,000 -$497,000 -$25,000 Changes in Inventories -$422,000 -$429,000 -$1,023,000 -$179,000 Other Operating Activities -$1,667,000 -$937,000 -$504,000 -$1,610,000 Liabilities $2,925,000 $1,384,000 $2,082,000 $1,317,000 Net Cash Flow-Operating $5,943,000 $2,405,000 $2,098,000 -$61,000 Cash Flows-Investing Activities Capital Expenditures -$3,232,000 -$1,432,000 -$2,319,000 -$4,081,000 Investments -- -- -- -- Other Investing Activities $100,000 -$4,000 -$18,000 -$115,000 Net Cash Flows-Investing -$3,132,000 -$1,436,000 -$2,337,000 -$4,196,000 Cash Flows-Financing Activities Sale and Purchase of Stock $12,675,000 $1,555,000 $727,000 $1,272,000 Net Borrowings -$2,488,000 $798,000 $89,000 $3,385,000 Other Financing Activities -- -- -- -- Net Cash Flows-Financing $9,973,000 $1,529,000 $574,000 $4,415,000 Effect of Exchange Rate $334,000 $8,000 -$23,000 $40,000 Net Cash Flow $13,118,000 $2,506,000 $312,000 $198,000 Period Ending: 12/31/2020 12/31/2019 12/31/2018 12/31/2017 Liquidity Ratios Current Ratio 188% 113% 83% 86% Quick Ratio 159% 80% 52% 56% Cash Ratio 136% 59% 39% 46% Profitability Ratios Gross Margin 21% 17% 19% 19% Operating Margin 6% 0% 0% 0% Pre-Tax Margin 4% 0% 0% 0% Profit Margin 2% 0% 0% 0% Pre-Tax ROE 5% 0% 0% 0% After Tax ROE 3% 0% 0% 0%

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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Question

Write a 100 word analysis on your overall interpretation of the financial health of the company below. Include if you would recommend investing in this company and explain your reasoning.

Period Ending:	12/31/2020	12/31/2019	12/31/2018	12/31/2017
Total Revenue	$31,536,000	$24,578,000	$21,461,000	$11,759,000
Cost of Revenue	$24,906,000	$20,509,000	$17,419,000	$9,536,000
Gross Profit	$6,630,000	$4,069,000	$4,042,000	$2,223,000
Operating Expenses
Research and Development	$1,491,000	$1,343,000	$1,460,000	$1,378,000
Sales, General and Admin.	$3,145,000	$2,646,000	$2,835,000	$2,477,000
Non-Recurring Items	--	$149,000	$135,000	--
Other Operating Items	--	--	--	--
Operating Income	$1,994,000	-$69,000	-$388,000	-$1,632,000
Add'l income/expense items	-$92,000	$89,000	$46,000	-$106,000
Earnings Before Interest and Tax	$1,902,000	$20,000	-$342,000	-$1,738,000
Interest Expense	$748,000	$685,000	$663,000	$471,000
Earnings Before Tax	$1,154,000	-$665,000	-$1,005,000	-$2,209,000
Income Tax	$292,000	$110,000	$58,000	$32,000
Minority Interest	--	--	--	--
Equity Earnings/Loss Unconsolidated Subsidiary	-$172,000	-$95,000	$87,000	$279,000
Net Income-Cont. Operations	$690,000	-$870,000	-$976,000	-$1,962,000
Net Income	$690,000	-$870,000	-$976,000	-$1,962,000
Net Income Applicable to Common Shareholders	$690,000	-$870,000	-$976,000	-$1,962,000

Period Ending:	12/31/2020	12/31/2019	12/31/2018	12/31/2017
Current Assets
Cash and Cash Equivalents	$19,384,000	$6,268,000	$3,879,000	$3,523,237
Short-Term Investments	--	--	--	--
Net Receivables	$1,886,000	$1,324,000	$949,000	$515,381
Inventory	$4,101,000	$3,552,000	$3,113,000	$2,263,537
Other Current Assets	$1,346,000	$959,000	$366,000	$268,365
Total Current Assets	$26,717,000	$12,103,000	$8,307,000	$6,570,520
Long-Term Assets
Long-Term Investments	--	--	$422,000	$456,652
Fixed Assets	$17,396,000	$14,061,000	$13,420,000	$14,144,126
Goodwill	$207,000	$198,000	$68,000	$60,237
Intangible Assets	$313,000	$339,000	$282,000	$361,502
Other Assets	$7,515,000	$7,608,000	$7,241,000	$7,062,335
Deferred Asset Charges	--	--	--	--
Total Assets	$52,148,000	$34,309,000	$29,740,000	$28,655,372
Current Liabilities
Accounts Payable	$9,906,000	$6,993,000	$5,499,000	$4,121,616
Short-Term Debt / Current Portion of Long-Term Debt	$2,132,000	$1,785,000	$2,568,000	$896,549
Other Current Liabilities	$2,210,000	$1,889,000	$1,926,000	$2,656,505
Total Current Liabilities	$14,248,000	$10,667,000	$9,993,000	$7,674,670
Long-Term Debt	$9,556,000	$11,634,000	$9,404,000	$9,418,319
Other Liabilities	$3,330,000	$2,691,000	$3,039,000	$4,752,192
Deferred Liability Charges	$1,284,000	$1,207,000	$991,000	$1,177,799
Misc. Stocks	$850,000	$849,000	$834,000	$997,346
Minority Interest	$655,000	$643,000	$556,000	$397,804
Total Liabilities	$29,268,000	$27,048,000	$24,261,000	$24,020,326
Stock Holders Equity
Common Stocks	$1,000	$1,000	--	$169
Capital Surplus	-$5,399,000	-$6,083,000	-$5,318,000	-$4,974,299
Retained Earnings	--	--	--	--
Treasury Stock	$27,260,000	$12,736,000	$10,249,000	$9,178,024
Other Equity	$363,000	-$36,000	-$8,000	$33,348
Total Equity	$22,225,000	$6,618,000	$4,923,000	$4,237,242
Total Liabilities & Equity	$52,148,000	$34,309,000	$29,740,000	$28,655,372

Period Ending:	12/31/2020	12/31/2019	12/31/2018	12/31/2017
Net Income	$690,000	-$870,000	-$976,000	-$1,962,000
Cash Flows-Operating Activities
Depreciation	$2,502,000	$2,342,000	$2,060,000	$1,727,000
Net Income Adjustments	$2,395,000	$1,187,000	$1,043,000	$950,000
Changes in Operating Activities
Accounts Receivable	-$652,000	-$367,000	-$497,000	-$25,000
Changes in Inventories	-$422,000	-$429,000	-$1,023,000	-$179,000
Other Operating Activities	-$1,667,000	-$937,000	-$504,000	-$1,610,000
Liabilities	$2,925,000	$1,384,000	$2,082,000	$1,317,000
Net Cash Flow-Operating	$5,943,000	$2,405,000	$2,098,000	-$61,000
Cash Flows-Investing Activities
Capital Expenditures	-$3,232,000	-$1,432,000	-$2,319,000	-$4,081,000
Investments	--	--	--	--
Other Investing Activities	$100,000	-$4,000	-$18,000	-$115,000
Net Cash Flows-Investing	-$3,132,000	-$1,436,000	-$2,337,000	-$4,196,000
Cash Flows-Financing Activities
Sale and Purchase of Stock	$12,675,000	$1,555,000	$727,000	$1,272,000
Net Borrowings	-$2,488,000	$798,000	$89,000	$3,385,000
Other Financing Activities	--	--	--	--
Net Cash Flows-Financing	$9,973,000	$1,529,000	$574,000	$4,415,000
Effect of Exchange Rate	$334,000	$8,000	-$23,000	$40,000
Net Cash Flow	$13,118,000	$2,506,000	$312,000	$198,000

Period Ending:	12/31/2020	12/31/2019	12/31/2018	12/31/2017
Liquidity Ratios
Current Ratio	188%	113%	83%	86%
Quick Ratio	159%	80%	52%	56%
Cash Ratio	136%	59%	39%	46%
Profitability Ratios
Gross Margin	21%	17%	19%	19%
Operating Margin	6%	0%	0%	0%
Pre-Tax Margin	4%	0%	0%	0%
Profit Margin	2%	0%	0%	0%
Pre-Tax ROE	5%	0%	0%	0%
After Tax ROE	3%	0%	0%	0%

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