Build a Model: Ratio Analysis Start with the partial model in the file Ch07 P15 Build a Model.xlsx from the textbook’s Web site. Joshua & White (J&W) Technology’s financial statements are also shown here. Answer the following questions.

b. Has J&W’s liquidity position improved or worsened? Explain.

c. Has J&W’s ability to manage its assets improved or worsened? Explain.

d. How has J&W’s profitability changed during the last year?

e. Perform an extended DuPont analysis for J&W for 2020 and 2021. What do these results tell you?

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

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

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Joshua & White Technology: December 31 Balance Sheets (Thousands of Dollars) Assets 2021 2020 Liabilities & Equity Cash $ 21,000 $20,000 Short-term investments 3,759 3,240 Accounts receivable 52,500 48,000 Inventories 84,000 56,000 $161,259 $127,240 223,097 200,000 $384,356 $327,240 Total current assets Net fixed assets Total assets Accounts payable Accruals 2021 $ 33,600 12,600 Notes payable 19,929 Total current liabilities $ 66,129 67,662 $ 133,791 Long-term debt Total liabilities Common stock Retained earnings Total common equity $250,565 Total liabilities & equity $384,356 178,440 72,125 2020 $ 32,000 12,000 6,480 $ 50,480 58,320 $108,800 178,440 40,000 $218,440 $327,240