Joshua & White (J&W) Technologies's financial statements are also shown below. Answer the following questions. (Note: Industry average ratios are provided in Ch03 Build a Model.xlsx.)

a. Has J&Ws liquidity position improved or worsened? Explain.

b. Has J&Ws ability to manage its assets improved or worsened? Explain.

c. How has J&Ws profitability changed during the past year?

d. Perform an extended DuPont analysis for J&W for 2014 and 2015. What do these results tell you?

e. Perform a common size analysis. What has happened to the composition (that is, percentage in each category) of assets and liabilities?

f. Perform a percentage change analysis. What does this tell you about the change in profitability and asset utilization?

Joshua & White Technologies: December 31 Balance Sheets (Thousands of Dollars)

Joshua & White Technologies December 31 Income Statements (Thousands of Dollars)

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Liabilities & Equity Assets 2015 2014 2015 2014 $ 33,600 $ 32,000 $ 20,000 $ 21,000 Accounts payable Cash Short-term investments 3,759 3,240 Accruals 12,000 12,600 Accounts receivable 48,000 Notes payable 19,929 6,480 52,500 56,000 Total current Inventories 84,000 50,480 liabilities 66,129 Total current assets 127,240 Long-term debt 200,000 67,662 161,259 58,320 Net fixed assets Total liabilities 218,400 133,791 108,800 Total assets $379,659 $327,240 Common stock 183,793 178,440 Retained earnings 40,000 62,075 Total common 245,868 218,440 equity Total liabilities & $379,659 $327,240 equity 2015 2014 Sales $420,000 $400,000 COGS excluding depr. & amort. Depreciation and amortization Other operating expenses 300,000 298,000 19,660 18,000 27,600 22,000 EBIT 72,740 62,000 Interest expense 5,740 4,460 EBT 67,000 57,540 Taxes (40%) 26,800 23,016 Net income $ 40,200 $ 34,524 Common dividends $ 18,125 $ 17,262 Other Data 2015 2014 Year-end stock price 90.00 $ 96.00 Number of shares (thousands) 4,052 4,000 Lease payment (thousands of dollars) Sinking fund payment (thousands of dollars) $ 20,000 $ 5,000 $ 20,000 $ 5,000 $