Do a trend and peer comparison analysis of the company’s solvency, stored liquidity, cash flow liquidity and performance trends for the current year compared to the previous year by looking at:

Summarize the strengths and weaknesses for the company based on your above analysis including what you found for the entire analysis including your analysis of liquidity, solvency, and financial performance.

 

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Susie'sEmporiumFinancial Data (in thousands) Financial Statements: Current & Previous Year Income Statement (in thous.) Total Revenue Cost of Goods Sold Current Year Previous Year 7.270.965 6,543,868 5.088.078 4.580.708 Gross Profit 2,182,887 1,963,160 Selling & Administrative Costs O Earnings Before Interest & Taxes Interest Expense 2 Earnings Before Taxes Income Tax Expense 4 Net Income 5 Dividend Paid 5 Addition to Ret. Erngs 1,648,000 1,483,200 534,887 479,960 4.012 4.500 530,875 475,460 179.557 295,903 57,641 238,262 200.484 330,391 64,359 266,032 3 Balance Sheet (in thous.) e Assets: P Cash 1 Accounts Receivable 2 Inventory 3 Other Current Assets 4 Total Current Assets 5 Net PP&E 5 Other Long-term Assets Curr. Yr. Prev. Yr. Source Use 118,936 221,679 94.585 102,743 66,827 27758 1,527,187 1,390,767 136,420 99.740 91.767 7,973 1,812,690 1,657,919 88.727 3,559,336 1,798,798 1,514,138 143781 78.768 3,391,704 9959 Total Assets 3 Liabilities & Equity: e Accts. Payable p Accrued Liabilities 1 Notes Payable 2 Total Curr. Liabs. 3 Long-term Debt 4 Total Debt 5 Common Stock 5 Retained Earnings Total Equity 3 Total Debt & Equity 1,006,700 184,386 589 1,191,675 946,037 172,259 60,663 12,127 537 52 1,118,833 440,646 578.474 1,770,149 137828 1,559,479 51,973 361,043 309070 1.737.214 1,789,187 1.471.182 266,032 1.832,225 3,391,704 Total S&U 3,559,336 607,203 607,203 o Indirect Cash Flow Statement for Curr. Year 1 Cash Flow from Operations: 2 Net Income 3 Depreciation Expense 4 Adjustments for Cash Not Received or Paid 5 Plus Decline in Accounts Receivables 5 Less Rise in Inventory - Less Rise in Other Current Assets 8 Plus Rise in Accounts Payable e Plus Rise in Accrued Liabilities Financial Ratios Current Year Prev. Year Peer Ave 330,391 ROE 18.47% 16.15% 20.64% 83.000 ROA 9.28% 8.72% 7.00% NPM 4.54% 4.52% 5.20% 27,758 AU 2.04 1.93 1.34 -136,420 GPM 30.02% 30.00% 35.00% -7,973 OPM 7.36% 7.33% 7.50% 60,663 Fixed Asset Util. 3.07 3.03 3.00 12,127 Peer Ave Net Cash Flow from Operations 369,546 Days Inventory 135 days 109.55 110.82 1 Cash Used for Investments: 2 Change in Gross Fixed Assets 3 (calculated as Change NPPE + Depr. Expense) Days Acct.Rec. 3.35 5.28 6 days 236,740 Days Acct Pay. 72.22 75.38 72.00 69.00 day CashtoCashDays Current Ratio 40.69 40.71 Net Cash Used for Investments 236,740 1.52 1.61 1.39 5 Cash from Financing 5 Less Dividends Paid 7 Rise in Notes Payable (i.e. new notes payable) B Rise in Long-term Debt e Falll in Common Stock (i.e. stock buy-back) Quick Ratio 0.24 0.36 0.37 -64,359 Debt to Assets 49.73% 45.98% 64.00% 52 TIE 133.32 106.66 4.39 137,828 LTDebttoAssets 16.25% 12.99% 20.00% -309,070 EM 1.99 1.85 2.77 Net Cash from Financing -235,549 Change in Cash: CFO Less CFI + CFF -102,743 2 Check: Curr. Cash Bal Less Previous Cash Bal. 3 Change in Cash Balance -102,743 Susie'sEmporiumFinancial Data (in thousands) Financial Statements: Current & Previous Year Income Statement (in thous.) Total Revenue Cost of Goods Sold Current Year Previous Year 7.270.965 6,543,868 5.088.078 4.580.708 Gross Profit 2,182,887 1,963,160 Selling & Administrative Costs O Earnings Before Interest & Taxes Interest Expense 2 Earnings Before Taxes Income Tax Expense 4 Net Income 5 Dividend Paid 5 Addition to Ret. Erngs 1,648,000 1,483,200 534,887 479,960 4.012 4.500 530,875 475,460 179.557 295,903 57,641 238,262 200.484 330,391 64,359 266,032 3 Balance Sheet (in thous.) e Assets: P Cash 1 Accounts Receivable 2 Inventory 3 Other Current Assets 4 Total Current Assets 5 Net PP&E 5 Other Long-term Assets Curr. Yr. Prev. Yr. Source Use 118,936 221,679 94.585 102,743 66,827 27758 1,527,187 1,390,767 136,420 99.740 91.767 7,973 1,812,690 1,657,919 88.727 3,559,336 1,798,798 1,514,138 143781 78.768 3,391,704 9959 Total Assets 3 Liabilities & Equity: e Accts. Payable p Accrued Liabilities 1 Notes Payable 2 Total Curr. Liabs. 3 Long-term Debt 4 Total Debt 5 Common Stock 5 Retained Earnings Total Equity 3 Total Debt & Equity 1,006,700 184,386 589 1,191,675 946,037 172,259 60,663 12,127 537 52 1,118,833 440,646 578.474 1,770,149 137828 1,559,479 51,973 361,043 309070 1.737.214 1,789,187 1.471.182 266,032 1.832,225 3,391,704 Total S&U 3,559,336 607,203 607,203 o Indirect Cash Flow Statement for Curr. Year 1 Cash Flow from Operations: 2 Net Income 3 Depreciation Expense 4 Adjustments for Cash Not Received or Paid 5 Plus Decline in Accounts Receivables 5 Less Rise in Inventory - Less Rise in Other Current Assets 8 Plus Rise in Accounts Payable e Plus Rise in Accrued Liabilities Financial Ratios Current Year Prev. Year Peer Ave 330,391 ROE 18.47% 16.15% 20.64% 83.000 ROA 9.28% 8.72% 7.00% NPM 4.54% 4.52% 5.20% 27,758 AU 2.04 1.93 1.34 -136,420 GPM 30.02% 30.00% 35.00% -7,973 OPM 7.36% 7.33% 7.50% 60,663 Fixed Asset Util. 3.07 3.03 3.00 12,127 Peer Ave Net Cash Flow from Operations 369,546 Days Inventory 135 days 109.55 110.82 1 Cash Used for Investments: 2 Change in Gross Fixed Assets 3 (calculated as Change NPPE + Depr. Expense) Days Acct.Rec. 3.35 5.28 6 days 236,740 Days Acct Pay. 72.22 75.38 72.00 69.00 day CashtoCashDays Current Ratio 40.69 40.71 Net Cash Used for Investments 236,740 1.52 1.61 1.39 5 Cash from Financing 5 Less Dividends Paid 7 Rise in Notes Payable (i.e. new notes payable) B Rise in Long-term Debt e Falll in Common Stock (i.e. stock buy-back) Quick Ratio 0.24 0.36 0.37 -64,359 Debt to Assets 49.73% 45.98% 64.00% 52 TIE 133.32 106.66 4.39 137,828 LTDebttoAssets 16.25% 12.99% 20.00% -309,070 EM 1.99 1.85 2.77 Net Cash from Financing -235,549 Change in Cash: CFO Less CFI + CFF -102,743 2 Check: Curr. Cash Bal Less Previous Cash Bal. 3 Change in Cash Balance -102,743

Answer rating: 100% (QA)

complete solution is given below 1 Comparison analysis of company solvency a Debt to asset ratio debts Total assets Debts long term loans long term de... View the full answer