Analyze the three cases presented using the ratios, In your analysis, answer the following questions:

• Are the companies doing well?
• What types of firms are these?
• Is seasonality in existence?
• What is happening at the company using the ratios given and an evaluation over time and industry?
• What type of industry is this likely to be?
• What is the financial condition?
• What ratios need to improve and how? Which ones are solid and why?

Case 1 - Schmidt Sportswear

Case 2 - Taxman CPA

Case 3 - Wynn Dike Manufacturing Company

(Case 1) Schmidt Sportswear: C= company I= Industry
Year X	Year Y	Year Z
Growth in Sales	C	NMF	25%	25%
I	NMF	10%	12%
Profit Margin	C	7.28%	6.13%	6.48%
I	7.82%	7.83%	7.98%
ROA	C	8.02%	6.70%	5.54%
I	7.98%	8.79%	8.99%
ROE	C	15.89%	14.21%	13.98%
I	14.28%	15.62%	16.03%
Receivables Turn	C	7.05X	5.80X	5.22X
I	9.03X	8.88X	9.32X
Average Collection	C	52 days	63 days	68.1 days
I	40 days	41.3 days	39 days
Inventory Turnover	C	5.23X	5.75X	6.48X
I	4.25X	5.12X	5.13X
Fixed Asset Turnover	C	1.86X	1.97X	1.36X
I	1.63C	1.64X	1.77X
Total Asset Turnover	C	1.1X	1.11X	.89X
I	1.05X	1.12X	1.14X
(Case 2) Ratio Analysis - Taxman CPA
Year V	Year W	Year X	Year Y	Year Z
Current	C	2.2	2.3	2.2	1.9	2.1
I	2.5	2.4	2.4	2	2.2
Quick	C	1.9	1.9	2	1.7	1.8
I	2.2	2.2	2.2	1.8	2
Profit Margin	C	33%	37%	32%	35%	35%
I	56%	55%	56%	48%	51%
EPS	C	NMF	NMF	NMF	NMF	NMF
I	2.25	2.19	1.95	2.11	2.25
P/E	C	NMF	NMF	NMF	NMF	NMF
I	18	17	15	15	12
Debt/Assets	C	22%	21%	20%	20%	20%
I	64%	60%	66%	58%	60%
Inventory Turnover	C	33 times	34 times	30 times	28 times	33 times
I	22 times	21 times	20 times	20 times	18 times
Receivables Turnover	C	15 times	15 times	12 times	15 times	14 times
I	4.5 times	2.36 times	2.2 times	3.7 times	2.8 times
ROW	C	48%	49%	36%	55%	52%
I	36%	33%	24%	30%	29%
ROA	C	9.40%	8.60%	7.10%	9%	8.40%
I	21%	19%	15%	12.50%	19%
(Case 3) Wynn Bike Manufacturing Company
Wynn	Industry
ROA	4.19%	5.76%
ROE	3.67%	7.00%
Receivables turnover	2.34X	4.86%
Profit margin	9.20%	10.36%
Inventory turnover	7X	6.56X
Fixed Asset turnover	1.76X	1.96X
Total Asset turnover	.96X	1.23X
Current ratio	1.56X	1.45X
Quick ratio	1.16X	1.12X
Debt/Total assets	64.58%	25.60%

(Case 1) Schmidt Sportswear: C= company I= Industry Year X Growth in Sales C NMF I NMF Profit Margin C 7.28% I 7.82% ROA C 8.02% I 7.98% ROE C 15.89% I 14.28% Receivables Turn C 7.05X I 9.03X Average Collection C 52 days I 40 days Inventory Turnover C 5.23X I 4.25X Fixed Asset Turnover C 1.86X I 1.63C Total Asset Turnover C 1.1X I 1.05X Year Y 25% 10% 6.13% 7.83% 6.70% 8.79% 14.21% 15.62% 5.80X 8.88X 63 days 41.3 days 5.75X 5.12X 1.97X 1.64X 1.11X 1.12X Year Z 25% 12% 6.48% 7.98% 5.54% 8.99% 13.98% 16.03% 5.22X 9.32X 68.1 days 39 days 6.48X 5.13X 1.36X 1.77X .89X 1.14X Year V Year W 2.2 2.3 2.5 2.4 1.9 1.9 2.2 2.2 33% 37% 56% 55% NMF NMF 2.25 2.19 NMF NMF 18 17 22% 21% 64% 60% 33 times 34 times 22 times 21 times 15 times 15 times 4.5 times 2.36 times 48% 49% 36% 33% 9.40% 8.60% 21% 19% Year X 2.2 2.4 2 2.2 32% 56% NMF 1.95 NMF 15 20% 66% 30 times 20 times 12 times 2.2 times 36% 24% 7.10% 15% (Case 2) Ratio Analysis - Taxman CPA Current Quick Profit Margin EPS P/E Debt/Assets Inventory Turnover Receivables Turnover ROW ROA C I C I C I C I C I C I C I C I C I C I (Case 3) Wynn Bike Manufacturing Company Wynn ROA 4.19% ROE 3.67% Receivables turnover 2.34X Profit margin 9.20% Inventory turnover 7X Fixed Asset turnover 1.76X Total Asset turnover .96X Current ratio 1.56X Quick ratio 1.16X Debt/Total assets 64.58% Industry 5.76% 7.00% 4.86% 10.36% 6.56X 1.96X 1.23X 1.45X 1.12X 25.60% Year Y Year Z 1.9 2.1 2 2.2 1.7 1.8 1.8 2 35% 35% 48% 51% NMF NMF 2.11 2.25 NMF NMF 15 12 20% 20% 58% 60% 28 times 33 times 20 times 18 times 15 times 14 times 3.7 times 2.8 times 55% 52% 30% 29% 9% 8.40% 12.50% 19%