Comparative historical financial statements for Northern Manufacturing of the preceeding problem are as follows.

a. Use the ANALYS program to prepare common size statements and a set of financial ratios for each of the last three years.

b. Analyze the results of ANALYS for Northern Manufacturing. The firm has been quite successful in terms of revenue and profit growth so far. Do the ratios reveal any disturbing trends that might indicate futureproblems?

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Northern Manufacturing Income Statements For the years ended 12/31/X1 1231/X2 1231/X3 $17,850 $20,510 $22,560 10.665 RO Sales COGS Gross margin Expense Depreciation EBIT Interest EBT 9.100 10.0 11,506 s 8,750 9,845 11,054 5,332 700 $ 2,970 3,493 5,022 1,180 5,180 600 5,702 650 800 910 s 2,170 S2,583 1,033 3,842 ах 1.552 1,537 Net income $ 1,302 1,550 2,305 Dividends paid 650 750 1,200 1,000 Lease payments 500 700 800 Stock sold 0 0 Northern Manufacturing Balance Sheets For the years ended 12/31/XO 12/31/X1 12/31/X2 1231/X3 ASSETS Cash Accounts receivable Inventory CURRENT ASSETS Fixed assets $ 955 980 500 200 7,300 6,470 $6,948 7583 $11,930 $13,970 3,103 2,890 3,570 3,033 6,250 5,180 $ 5,800 6,650 7,500 9,000 ,150 1,750) 2,400) (3,100 $ 4,650 4,900 5,100 5,900 $11,598 $12,483 $17,030 $19,870 Gross Accumulated deprec. Net TOTAL ASSETS LIABILITIES Accounts payable Accruals CURRENT LIABILITIES Long-term debt Equity TOTAL CAPITAL $ 1,860 1,650 1,860 2,210 220 $2,245 2,392 2,710 2,430 $ 7,805 7,891 $11,320 $12,335 5,105 $ 9,353 $10,091 $14,320 $ 17,440 TOTAL LIABILITIES & EQUITY $11,598 $12,483 $ 17,030 $19,870 300,000 300,000 315,000 $ 78.12 70.00 65.88 385 742 850 1,548 2,200 3,000 Number of shares Stock price