A2 A B C D F G H 1 NOTE: You may 1) place your answer to this problem on the sheets provided in this file (Le. "Part a" and "Part b"), or 2) place your answer on a Word file or 3) write your answer on paper and prepare a scanned file of your answer. Whatever method you choose, submit your file to the Assignment Dropbox for Module 5. 2 Question: XYZ Company's financial data is presented below. 3 Required: 4 a) Calculate the seven ratios in the financial analysis map for 2017 and 2016. Show your calculations, using the Module 5 Practice Problem as a model. You do not need to show the "Supprting Calculations." b) By referring to the ratios, write a brief assessment of the financial performance of XYZ 5 Company. 6 XYZ Company 2017 2016 2015 7 8 Balance Sheet 9 Cash $ 7,500 $ 5,000 $ 4,600 10 Accounts Receivable 2,400 2,900 2,200 11 Inventory 1,360 3,400 1,920 12 Prepaid Expenses 830 1,210 360 13 Other Current Assets 380 430 360 14 Total Current Assets 12,470) 12,940 9,440 15 Property and Equipment 72,000 87,000 16 Total Assets $ 84,470 $ 99,940 30,200 $39,640 17 18 Current Liabilities $ 8,800 $ 8,800 $ 9,800 19 Long-term Liabilities 38,200 48,640 15,600 20 Total Liabilities 47,000 57,440 25,400 21 Contributed Capital 29,800 40,000 13,300 22 Retained Earnings 7,670 2,500 940 23 Total Shareholders' equity 37,470 42,500 24 Total Liabilities and Shareholders' Equity 14,240 $ 84,470 $ 99,940 $39,640 25 Income Statement 26 Sales Revenue 27 Cost of Goods Sold 28 Gross Profit 29 30 31 Operating Expenses Income from Operations Interest Expense $ 92,000 $ 64,000 $52,000 69,800 22,200 52,000 39,000 12,000 13,000 4,800 2,800 7,800 17,400 9,200 5,200 3,474 "Supprting Calculations." b) By referring to the ratios, write a brief assessment of the financial performance of XYZ Company. XYZ Company 2017 2016 2015 Balance Sheet Cash Accounts Receivable $ 7,500 $ 5,000 $ 4,600 2,400 2,900 2,200 Inventory Prepaid Expenses Other Current Assets Total Current Assets Property and Equipment 1,360 3,400 1,920 830 1,210 360 380 430 360 12,470 12,940 9,440 72,000 87,000 30,200 5 Total Assets $ 84,470 $ 99,940 $39,640 7 8 Current Liabilities $ 8,800 $ 8,800 $ 9,800 9 Long-term Liabilities 38,200 48,640 15,600 20 Total Liabilities 47,000 57,440 25,400 21 Contributed Capital 29,800 40,000 13,300 22 Retained Earnings 7,670 2,500 940 231 Total Shareholders' equity 37,470 42,500 14,240 24 Total Liabilities and Shareholders' Equity $ 84,470 $ 99,940 $39,640 25 Income Statement 26 Sales Revenue $ 92,000 $ 64,000 $52,000 27 Cost of Goods Sold 69,800 52,000 39,000 28 Gross Profit 22,200 12,000 13,000 29 Operating Expenses 4,800 2,800 7,800 30 Income from Operations 17,400 9,200 5,200 31 Interest Expense 3,474 1,606 1,200 32 Earnings before income taxes 13,926 7,594 4,000 33 34 Income Tax Expense Net Income 4,178 2,278 1,200 $ 9,748 $ 5,316 $ 2,800 35 36 37 98 39 Question Part a Part b READY C e 07