Question
You are given with the following information of a firm Crazy Bear, assuming that the firm did not issue preferred stocks while the firm may
You are given with the following information of a firm "Crazy Bear", assuming that the firm did not issue preferred stocks while the firm may have some foreign subsidiaries overseas. The firm is making perfumes and cosmetics for middle-income class of consumers. This industry tends to have high gross profit margin such as 25% and the set-up costs are also high due to the production and technology. The R&D (Research and Development) costs are entirely reported as operating expenses according to the GAAP.
Balance Sheet (in millions) 2017 2018 2019
Assets
Cash 1230 210 1070
Marketable securities 50 200 0
Accounts Receivable 1420 1350 2200
Inventory 260 1578 1450
Plant, Building, and Equipments (net) 2873 2205 90
Investments in affiliates 0 430 1329
Total Assets 5833 5973 6139
Liabilities
Short-term debts 107 130 30
Advances from customers 421 326 534
Accounts payable 1685 1792 657
Interest payable 75 198 62
Tax payable 147 120 128
Other Accrued Expenses 20 15 35
Bonds payable 1025 1976 2450
Stockholders' Equity
Common stock 2001 1201 1975
Additional paid-in capital 74 156 144
Retained earning 278 59 124
Total liabilities and equities 5833 5973 6139
Income Statement(in millions) 2017 2018 2019
Net Sales 4529 5418 6883
Cost of Goods Sold 2215 3109 3310
Selling and General Expenses 771 812 1059
Depreciation Expense 213 298 284
Interest Expense 97 109 621
Income Tax Expense 175 137 154
Net Income 1058 953 1455
a) Perform the Ratio Analysis for the firm. (Need all the ratios that cover the activity analysis, liquidity analysis, solvency analysis to the profitability analysis)
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