Company A sells on terms of 2/10, net 30. Its financial statements over the last three years are as follows. Please use the ratios, analyze the company’s financial condition and performance over the last three years. Are there any problems?

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20X1 20X2 20X3 Cash 2$ 30,000 $ 20,000 2$ 5,000 Accounts receivable 200,000 260,000 290,000 Inventory Net fixed assets 400,000 480,000 600,000 800,000 $1,430,000 $ 230,000 800,000 $1,560,000 $ 300,000 800,000 $1,695,000 $ 380,000 Accounts payable Accruals Bank loan, short term 200,000 210,000 225,000 100,000 100,000 140,000 Long-term debt Common stock Retained earnings 300,000 300,000 300,000 100,000 100,000 100,000 550,000 $1,560,000 500,000 550,000 $1,695,000 $1,430,000 Sales $4,000,000 3,200,000 $4,300,000 3,600,000 $3,800,000 Cost of goods sold Net profit 3,300,000 300,000 200,000 100,000 20X1 20X2 20X3 Cash 2$ 30,000 $ 20,000 2$ 5,000 Accounts receivable 200,000 260,000 290,000 Inventory Net fixed assets 400,000 480,000 600,000 800,000 $1,430,000 $ 230,000 800,000 $1,560,000 $ 300,000 800,000 $1,695,000 $ 380,000 Accounts payable Accruals Bank loan, short term 200,000 210,000 225,000 100,000 100,000 140,000 Long-term debt Common stock Retained earnings 300,000 300,000 300,000 100,000 100,000 100,000 550,000 $1,560,000 500,000 550,000 $1,695,000 $1,430,000 Sales $4,000,000 3,200,000 $4,300,000 3,600,000 $3,800,000 Cost of goods sold Net profit 3,300,000 300,000 200,000 100,000

Answer rating: 100% (QA)

The above table shows the different ratios calculated based on three years financial statement Analy... View the full answer