Financial Statement Analysis a Within this workbook there is a worksheet labeled Adjusted Trial Balances Within that worksheet you will find fully completed trial balances for 5 years Also within this workbook you will find worksheets for comparative income statements and comparative balance sheets Using the trial balances or comparative financial statements you need to calculate a variety of ratios You will find the required ratios in the worksheet labeled Ratios Historical Finish all the required ratios AND analysis (see Ratios Historical worksheet) You MUST use formulas and or linking to compute your ratios You cannot simply hard key the answers You must reference the appropriate data from the trial balances or comparative financial statements b After completing all of your ratio calcualtions, analyze the results in comparison to prior years and industry averages Type a business memo explaining your findings Your memo must be written in Word and follow normal business memo conventions use word memo templates for this There is not a length requirement, however you will be graded upon the substance of your analysis July 31, 2020 July 31, 2019 July 31, 2018 July 31, 2017 July 31, 2016 Adjusted Adjusted Adjusted Adjusted Adjusted Trial Balance Trial Balance Trial Balance Trial Balance Trial Balance Acct No Account Title Dr Cr Dr Cr Dr Cr Dr Cr Dr Cr 100 Cash 334,504 00 361,264 32 404,616 04 441,031 48 432,210 85 102 Accounts Receivable, net 533,086 00 575,732 88 644,820 83 702,854 70 688,797 61 104 Merchandise Inventory, net 449,397 00 485,348 76 543,590 61 592,513 77 580,663 49 106 Office Supplies 5,689 00 6,144 12 6,881 41 7,500 74 7,350 73 107 Prepaid Insurance 15,400 00 16,632 00 18,627 84 20,304 35 19,898 26 120 Investments Equity Trading (Temporary) 120,000 00 129,600 00 145,152 00 158,215 68 155,051 37 121 Investments HTM Long Term 35,400 00 38,232 00 42,819 84 46,673 63 45,740 15 122 Investments Equity Long Term 80,000 00 86,400 00 96,768 00 105,477 12 103,367 58 123 Valuation Allowance 52,000 00 56,160 00 62,899 20 68,560 13 67,188 93 140 Land 1,550,000 00 1,674,000 00 1,874,880 00 2,043,619 20 2,002,746 82 145 Building 1,200,000 00 1,296,000 00 1,451,520 00 1,582,156 80 1,550,513 66 146 Accumulated Depreciation Building 750,000 00 810,000 00 907,200 00 988,848 00 969,071 04 151 Equipment 85,000 00 91,800 00 102,816 00 112,069 44 109,828 05 152 Accumulated Depreciation Equipment 68,000 00 73,440 00 82,252 80 89,655 55 87,862 44 153 Office Furniture 14,000 00 15,120 00 16,934 40 18,458 50 18,089 33 154 Accumulated Depreciation Office Furniture 12,000 00 12,960 00 14,515 20 15,821 57 15,505 14 201 Accounts Payable 680,980 00 735,458 40 823,713 41 897,847 61 879,890 66 202 Wages Payable 203 Interest Payable 204 Dividends Payable 205 Unearned Rent 10,000 00 10,800 00 12,096 00 13,184 64 12,920 95 206 Customer Refunds Payable 18,795 00 20,298 60 22,734 43 24,780 53 24,284 92 250 Notes Payable Long Term 650,000 00 702,000 00 786,240 00 857,001 60 839,861 57 251 Bonds Payable 1,300,000 00 1,404,000 00 1,572,480 00 1,714,003 20 1,679,723 14 252 Premium on Bonds Payable 56,000 00 60,480 00 67,737 60 73,833 98 72,357 30 253 Discount on Bonds Payable 16,000 00 17,280 00 19,353 60 21,095 42 20,673 52 252 Mortgage (Warehouse) Payable 300,000 00 324,000 00 362,880 00 395,539 20 387,628 42 300 Common Stock, $1 Par, 100,000 Authorized 50,000 shares Issued Outstanding 50,000 00 50,000 00 50,000 00 50,000 00 50,000 00 301 Paid In Capital Excess of Par, Common Stock 347,575 25 381,694 33 361,143 16 490,813 03 484,375 09 330 Retained Earnings 324,582 75 388,687 17 329,202 03 308,639 67 294,694 17 331 Cash Dividends 250,000 00 300,000 00 200,000 00 200,000 00 200,000 00 340 Treasury Stock 50,000 00 60,000 00 20,000 00 20,000 00 10,000 00 500 Sales 4,256,800 00 4,512,208 00 4,963,428 80 4,218,914 48 4,092,347 05 600 Cost of Goods Sold 1,485,698 00 1,574,839 88 1,732,323 87 1,472,475 29 1,428,301 03 700 Wage Expense (hourly workers) 756,894 00 802,307 64 882,538 40 750,157 64 727,652 91 701 Salaries Expense (Exempt Staff) 800,000 00 848,000 00 932,800 00 792,880 00 769,093 60 702 Marketing Expense 295,000 00 312,700 00 343,970 00 292,374 50 283,603 27 703 Travel and Entertainment Expense 56,789 00 60,196 34 66,215 97 56,283 58 54,595 07 704 Bad Debt Expense 42,185 00 44,716 10 49,187 71 41,809 55 40,555 27 705 Property Tax Expense 500,000 00 530,000 00 583,000 00 495,550 00 480,683 50 706 Office Maintenance Repair Expense 2,000 00 2,120 00 2,332 00 1,982 20 1,922 73 707 Accounting Expenses 10,000 00 10,600 00 11,660 00 9,911 00 9,613 67 708 Insurance Expense 12,000 00 12,720 00 13,992 00 11,893 20 11,536 40 709 Utilities Expense 65,450 00 69,377 00 76,314 70 64,867 50 62,921 47 710 Office Supplies Expense 546 00 578 76 636 64 541 14 524 91 711 Telecommunications Expense 5,425 00 5,750 50 6,325 55 5,376 72 5,215 42 712 Depreciation Expense Building 30,000 00 31,800 00 34,980 00 29,733 00 28,841 01 713 Depreciation Expense Equipment 8,500 00 9,010 00 9,911 00 8,424 35 8,171 62 714 Depreciation Expense Office Furniture 2,000 00 2,120 00 2,332 00 1,982 20 1,922 73 800 Rent Income 8,000 00 8,480 00 9,328 00 7,928 80 7,690 94 801 Unrealized Gain Trading Securities 5,500 00 5,830 00 6,413 00 5,451 05 5,287 52 802 Realized Gain Investment Securities 85,460 00 90,587 60 99,646 36 84,699 41 82,158 42 900 Interest Expense 25,000 00 26,500 00 29,150 00 24,777 50 24,034 18 901 Unrealized Loss Trading Securities 2,500 00 2,650 00 2,915 00 2,477 75 2,403 42 902 Realized Loss Investment Securities 33,230 00 35,223 80 38,746 18 32,934 25 31,946 23 Total 8,923,693 00 8,923,693 00 9,590,924 10 9,590,924 10 10,471,010 79 10,471,010 79 10,236,962 32 10,236,962 32 9,985,658 76 9,985,658 76 Total Expenses and Revenue 4,133,217 00 4,355,760 00 4,381,210 02 4,617,105 60 4,819,331 02 5,078,816 16 4,096,431 37 4,316,993 74 3,973,538 43 4,187,483 92 Net Income (Loss) 222,543 00 235,895 58 259,485 14 220,562 37 213,945 50 (0 00) (0 00) (0 00) (0 00) 0 00 7 31 20 7 31 19 7 31 18 7 31 17 7 31 16 Sales Revenue Sales 4,256,800 00 4,512,208 00 4,963,428 80 4,218,914 48 4,092,347 05 Cost of Goods Sold 1,485,698 00 1,574,839 88 1,732,323 87 1,472,475 29 1,428,301 03 Gross Profit 2,771,102 00 2,937,368 12 3,231,104 93 2,746,439 19 2,664,046 02 Operating Expenses Wage Expense (hourly workers) 756,894 00 802,307 64 882,538 40 750,157 64 727,652 91 Salaries Expense (Exempt Staff) 800,000 00 848,000 00 932,800 00 792,880 00 769,093 60 Marketing Expense 295,000 00 312,700 00 343,970 00 292,374 50 283,603 27 Travel and Entertainment Expense 56,789 00 60,196 34 66,215 97 56,283 58 54,595 07 Bad Debt Expense 42,185 00 44,716 10 49,187 71 41,809 55 40,555 27 Property Tax Expense 500,000 00 530,000 00 583,000 00 495,550 00 480,683 50 Office Maintenance Repair Expense 2,000 00 2,120 00 2,332 00 1,982 20 1,922 73 Accounting Expenses 10,000 00 10,600 00 11,660 00 9,911 00 9,613 67 Insurance Expense 12,000 00 12,720 00 13,992 00 11,893 20 11,536 40 Utilities Expense 65,450 00 69,377 00 76,314 70 64,867 50 62,921 47 Office Supplies Expense 546 00 578 76 636 64 541 14 524 91 Telecommunications Expense 5,425 00 5,750 50 6,325 55 5,376 72 5,215 42 Depreciation Expense Building 30,000 00 31,800 00 34,980 00 29,733 00 28,841 01 Depreciation Expense Equipment 8,500 00 9,010 00 9,911 00 8,424 35 8,171 62 Depreciation Expense Office Furniture 2,000 00 2,120 00 2,332 00 1,982 20 1,922 73 Total Operating Expenses 2,586,789 00 2,741,996 34 3,016,195 97 2,563,766 58 2,486,853 58 Income from Operations (EBIT) 184,313 00 195,371 78 214,908 96 182,672 61 177,192 44 Other Revenues and Gains Rent Income 8,000 00 8,480 00 9,328 00 7,928 80 7,690 94 Unrealized Gain Trading Securities 5,500 00 5,830 00 6,413 00 5,451 05 5,287 52 Realized Gain Investment Securities 85,460 00 90,587 60 99,646 36 84,699 41 82,158 42 Total Other Revenue and Gains 98,960 00 104,897 60 115,387 36 98,079 26 95,136 88 Other Expenses and Losses Interest Expense 25,000 00 26,500 00 29,150 00 24,777 50 24,034 18 Unrealized Loss Trading Securities 2,500 00 2,650 00 2,915 00 2,477 75 2,403 42 Realized Loss Investment Securities 33,230 00 35,223 80 38,746 18 32,934 25 31,946 23 Total Other Expenses and Losses 60,730 00 64,373 80 70,811 18 60,189 50 58,383 82 Net Income (Loss) 222,543 00 235,895 58 259,485 14 220,562 37 213,945 50 Common Dividends 250,000 300,000 200,000 200,000 Weighted Average Common Shares 50,000 50,000 50,000 50,000 Market Price per Common Share 45 00 55 00 72 00 68 00 Balance Sheet July 31, 2020, 2019, 2018, 2017, 2016 7 31 20 7 31 19 7 31 18 7 31 17 7 31 16 ASSETS Current assets Cash 334,504 00 361,264 32 404,616 04 441,031 48 432,210 85 Accounts Receivable, net 533,086 00 575,732 88 644,820 83 702,854 70 688,797 61 Merchandise Inventory, net 449,397 00 485,348 76 543,590 61 592,513 77 580,663 49 Office Supplies 5,689 00 6,144 12 6,881 41 7,500 74 7,350 73 Prepaid Insurance 15,400 00 16,632 00 18,627 84 20,304 35 19,898 26 Investments Equity Trading (Temporary) 120,000 00 129,600 00 145,152 00 158,215 68 155,051 37 Total Current Assets 1,458,076 00 1,574,722 08 1,763,688 73 1,922,420 72 1,883,972 30 Property, plant equipment Land 1,550,000 00 1,674,000 00 1,874,880 00 2,043,619 20 2,002,746 82 Building 1,200,000 00 1,296,000 00 1,451,520 00 1,582,156 80 1,550,513 66 Accumulated Depreciation Building (750,000 00) (810,000 00) (907,200 00) (988,848 00) (969,071 04) Equipment 85,000 00 91,800 00 102,816 00 112,069 44 109,828 05 Accumulated Depreciation Equipment (68,000 00) (73,440 00) (82,252 80) (89,655 55) (87,862 44) Office Furniture 14,000 00 15,120 00 16,934 40 18,458 50 18,089 33 Accumulated Depreciation Office Furniture (12,000 00) (12,960 00) (14,515 20) (15,821 57) (15,505 14) Total Property, plant equipment 2,019,000 00 2,180,520 00 2,442,182 40 2,661,978 82 2,608,739 24 Other Assets Investments HTM Long Term 35,400 00 38,232 00 42,819 84 46,673 63 45,740 15 Investments Equity Long Term 80,000 00 86,400 00 96,768 00 105,477 12 103,367 58 Valuation Allowance 52,000 00 56,160 00 62,899 20 68,560 13 67,188 93 Total Other Assets 167,400 00 180,792 00 202,487 04 220,710 87 216,296 66 Total Assets 3,644,476 00 3,936,034 08 4,408,358 17 4,805,110 40 4,709,008 20 LIABILITIES STOCKHOLDER'S EQUITY LIABILITIES Current Liabilities Accounts Payable 680,980 00 735,458 40 823,713 41 897,847 61 879,890 66 Unearned Rent 10,000 00 10,800 00 12,096 00 13,184 64 12,920 95 Customer Refunds Payable 18,795 00 20,298 60 22,734 43 24,780 53 24,284 92 Total Current Liabilities 709,775 00 766,557 00 858,543 84 935,812 79 917,096 53 Long term Liabilities Notes Payable Long Term 650,000 00 702,000 00 786,240 00 857,001 60 839,861 57 Bonds Payable 1,300,000 00 1,404,000 00 1,572,480 00 1,714,003 20 1,679,723 14 Premium on Bonds Payable 56,000 00 60,480 00 67,737 60 73,833 98 72,357 30 Discount on Bonds Payable (16,000 00) (17,280 00) (19,353 60) (21,095 42) (20,673 52) Mortgage (Warehouse) Payable 300,000 00 324,000 00 362,880 00 395,539 20 387,628 42 Total Long term Liabilities 2,290,000 00 2,473,200 00 2,769,984 00 3,019,282 56 2,958,896 91 Total Liabilities 2,999,775 00 3,239,757 00 3,628,527 84 3,955,095 35 3,875,993 44 STOCKHOLDER'S EQUITY Common Stock, $1 Par, 100,000 Authorized 50,000 shares Issued Outstanding 50,000 00 50,000 00 50,000 00 50,000 00 50,000 00 Paid In Capital Excess of Par, Common Stock 347,575 25 381,694 33 361,143 16 490,813 03 484,375 09 Treasury Stock (50,000 00) (60,000 00) (20,000 00) (20,000 00) (10,000 00) Cash Dividends (250,000 00) (300,000 00) (200,000 00) (200,000 00) (200,000 00) Ending Retained Earnings 547,125 75 624,582 75 588,687 17 529,202 03 508,639 67 Total Stockholder's Equity 644,701 00 696,277 08 779,830 33 850,015 06 833,014 76 Total Liabilities and Stockholder's Equity 3,644,476 00 3,936,034 08 4,408,358 17 4,805,110 41 4,709,008 19 TOTAL ASSETS 3,644,476 00 3,936,034 08 4,408,358 17 4,805,110 40 4,709,008 20 TOTAL LIAB EQUITY 3,644,476 00 3,936,034 08 4,408,358 17 4,805,110 41 4,709,008 19 VARIANCE 0 0 0 0 Ratio Analysis July 31, 2020, 2019, 2018 Instructions Calculate each of the below ratios for the JUST THE current year FOLLOW the below steps to complete the ratio analysis 1 Round ALL answers 2 decimal places 2 Must USE ratio descriptions including how averages are calculated For example if average A R is required, students would input beginng A R, ending A R, and average A R as the description and then import corresponding amounts or formulas 3 MUST use excel formulas and links to IS comparative worksheets, BS comparative worksheets, or adjusted trial balance within this workbook (see current ratio for example of how answers are to look) 4 MUST indicate if current year answer is favorable, unfavorable, or same in realtion to prior year AND industry (see current ratio for example) 5 USE information at bottom of this worksheet to calculate certain ratios 6 If a portion of a ratio is not available, still use in ratio description and use 0 as part of formula 8 USE ratios and comparative statements to write a memo to Davenport Docking management explaining your findings 7 31 20 7 31 19 7 31 18 INDUSTRY Prior Year Industry Favorable, Unfavorable, Same Liquidity Current Ratio 2 05 1 2 10 2 10 2 25 Prior Year Unfavorable Current Assets 1,458,076 1,574,722 1,763,689 Industry Unfavorble Current Liabilities 709,775 766,557 858,544 Quick Ratio 2 1 39 1 39 1 20 361,264 32 404,616 04 575,732 88 644,820 83 129,600 00 145,152 00 766,557 00 858,543 84 Accounts Receivable Turnover 3 7 39 7 37 8 50 4,512,208 00 4,963,428 80 644,820 83 702,854 70 575,732 88 644,820 83 610,276 85 673,837 76 Inventory Turnover 4 3 06 3 05 2 50 1,574,839 88 1,732,323 87 543,590 61 592,513 77 485,348 76 543,590 61 514,469 69 568,052 19 Profitability Times Interest Earned 5 9 90 9 90 15 88 235,895 58 259,485 14 26,500 00 29,150 00 26,500 00 29,150 00 Asset Turnover 6 1 08 1 08 1 02 4,512,208 00 4,963,428 80 4,408,358 17 4,805,110 40 3,936,034 08 4,408,358 17 4,172,196 12 4,606,734 29 Return on Assets 7 6 29 6 27 10 50 235,895 58 259,485 14 26,500 00 29,150 00 4,408,358 17 4,805,110 40 3,936,034 08 4,408,358 17 4,172,196 12 4,606,734 29 Return on Common Shareholders' Equity 8 31 96 31 84 35 50 235,895 58 259,485 14 779,830 33 850,015 06 696,277 08 779,830 33 738,053 71 814,922 70 Earnings per Share (EPS) 9 $ 4 72 $ 5 19 $ 3 05 235,895 58 259,485 14 50,000 50,000 Price Earnings (P E ) Ratio 10 11 66 13 87 9 95 55 00 72 00 4 72 5 19 Dividends per Share 11 $ 6 00 $ 4 00 $ 2 00 300,000 00 200,000 00 50,000 00 50,000 00 Solvency Ratios Ratio of Liabilities to Stockholder's Equity 12 4 65 4 65 0 80 3,239,757 3,628,528 696,277 779,830 7 31 20 7 31 19 7 31 18 Common Dividends 250,000 300,000 200,000 Weighted Average Common Shares 50,000 50,000 50,000 Market Price per Share 45 55 72

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Question: Financial Statement Analysis a. Within this workbook there is a worksheet labeled Adjusted Trial Balances. Within that worksheet you will find fully completed trial balances

Financial Statement Analysis

a. Within this workbook there is a worksheet labeled "Adjusted Trial Balances". Within that worksheet you will find fully completed trial balances for 5 years. Also within this workbook you will find worksheets for comparative income statements and comparative balance sheets.Using the trial balances or comparative financial statements you need to calculate a variety of ratios. You will find the required ratios in the worksheet labeled "Ratios Historical". Finish all the required ratios AND analysis (see Ratios Historical worksheet). You MUST use formulas and/or linking to compute your ratios. You cannot simply hard key the answers. You must reference the appropriate data from the trial balances or comparative financial statements.

b. After completing all of your ratio calcualtions, analyze the results in comparison to prior years and industry averages.Type a business memo explaining your findings. Your memo must be written in Word and follow normal business memo conventions - use word memo templates for this. There is not a length requirement, however you will be graded upon the substance of your analysis.

		July 31, 2020	July 31, 2019	July 31, 2018	July 31, 2017	July 31, 2016
		Adjusted	Adjusted	Adjusted	Adjusted	Adjusted
		Trial Balance	Trial Balance	Trial Balance	Trial Balance	Trial Balance
Acct. No.	Account Title	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
100	Cash	334,504.00		361,264.32		404,616.04		441,031.48		432,210.85
102	Accounts Receivable, net	533,086.00		575,732.88		644,820.83		702,854.70		688,797.61
104	Merchandise Inventory, net	449,397.00		485,348.76		543,590.61		592,513.77		580,663.49
106	Office Supplies	5,689.00		6,144.12		6,881.41		7,500.74		7,350.73
107	Prepaid Insurance	15,400.00		16,632.00		18,627.84		20,304.35		19,898.26
120	Investments - Equity Trading (Temporary)	120,000.00		129,600.00		145,152.00		158,215.68		155,051.37
121	Investments - HTM Long Term	35,400.00		38,232.00		42,819.84		46,673.63		45,740.15
122	Investments - Equity Long Term	80,000.00		86,400.00		96,768.00		105,477.12		103,367.58
123	Valuation Allowance	52,000.00		56,160.00		62,899.20		68,560.13		67,188.93
140	Land	1,550,000.00		1,674,000.00		1,874,880.00		2,043,619.20		2,002,746.82
145	Building	1,200,000.00		1,296,000.00		1,451,520.00		1,582,156.80		1,550,513.66
146	Accumulated Depreciation - Building		750,000.00		810,000.00		907,200.00		988,848.00		969,071.04
151	Equipment	85,000.00		91,800.00		102,816.00		112,069.44		109,828.05
152	Accumulated Depreciation - Equipment		68,000.00		73,440.00		82,252.80		89,655.55		87,862.44
153	Office Furniture	14,000.00		15,120.00		16,934.40		18,458.50		18,089.33
154	Accumulated Depreciation - Office Furniture		12,000.00		12,960.00		14,515.20		15,821.57		15,505.14
201	Accounts Payable		680,980.00		735,458.40		823,713.41		897,847.61		879,890.66
202	Wages Payable
203	Interest Payable
204	Dividends Payable
205	Unearned Rent		10,000.00		10,800.00		12,096.00		13,184.64		12,920.95
206	Customer Refunds Payable		18,795.00		20,298.60		22,734.43		24,780.53		24,284.92
250	Notes Payable - Long Term		650,000.00		702,000.00		786,240.00		857,001.60		839,861.57
251	Bonds Payable		1,300,000.00		1,404,000.00		1,572,480.00		1,714,003.20		1,679,723.14
252	Premium on Bonds Payable		56,000.00		60,480.00		67,737.60		73,833.98		72,357.30
253	Discount on Bonds Payable	16,000.00		17,280.00		19,353.60		21,095.42	-	20,673.52
252	Mortgage (Warehouse) Payable		300,000.00		324,000.00		362,880.00		395,539.20		387,628.42
300	Common Stock, $1 Par, 100,000 Authorized; 50,000 shares Issued/Outstanding		50,000.00		50,000.00		50,000.00		50,000.00		50,000.00
301	Paid In Capital - Excess of Par, Common Stock		347,575.25		381,694.33		361,143.16		490,813.03		484,375.09
330	Retained Earnings		324,582.75		388,687.17		329,202.03		308,639.67		294,694.17
331	Cash Dividends	250,000.00		300,000.00		200,000.00		200,000.00		200,000.00
340	Treasury Stock	50,000.00		60,000.00		20,000.00		20,000.00		10,000.00
500	Sales		4,256,800.00		4,512,208.00		4,963,428.80		4,218,914.48		4,092,347.05
600	Cost of Goods Sold	1,485,698.00		1,574,839.88		1,732,323.87		1,472,475.29		1,428,301.03
700	Wage Expense (hourly workers)	756,894.00		802,307.64		882,538.40		750,157.64		727,652.91
701	Salaries Expense (Exempt Staff)	800,000.00		848,000.00		932,800.00		792,880.00		769,093.60
702	Marketing Expense	295,000.00		312,700.00		343,970.00		292,374.50		283,603.27
703	Travel and Entertainment Expense	56,789.00		60,196.34		66,215.97		56,283.58		54,595.07
704	Bad Debt Expense	42,185.00		44,716.10		49,187.71		41,809.55		40,555.27
705	Property Tax Expense	500,000.00		530,000.00		583,000.00		495,550.00		480,683.50
706	Office Maintenance & Repair Expense	2,000.00		2,120.00		2,332.00		1,982.20		1,922.73
707	Accounting Expenses	10,000.00		10,600.00		11,660.00		9,911.00		9,613.67
708	Insurance Expense	12,000.00		12,720.00		13,992.00		11,893.20		11,536.40
709	Utilities Expense	65,450.00		69,377.00		76,314.70		64,867.50		62,921.47
710	Office Supplies Expense	546.00		578.76		636.64		541.14		524.91
711	Telecommunications Expense	5,425.00		5,750.50		6,325.55		5,376.72		5,215.42
712	Depreciation Expense - Building	30,000.00		31,800.00		34,980.00		29,733.00		28,841.01
713	Depreciation Expense - Equipment	8,500.00		9,010.00		9,911.00		8,424.35		8,171.62
714	Depreciation Expense - Office Furniture	2,000.00		2,120.00		2,332.00		1,982.20		1,922.73
800	Rent Income		8,000.00		8,480.00		9,328.00		7,928.80		7,690.94
801	Unrealized Gain - Trading Securities		5,500.00		5,830.00		6,413.00		5,451.05		5,287.52
802	Realized Gain - Investment Securities		85,460.00		90,587.60		99,646.36		84,699.41		82,158.42
900	Interest Expense	25,000.00		26,500.00		29,150.00		24,777.50		24,034.18
901	Unrealized Loss - Trading Securities	2,500.00		2,650.00		2,915.00		2,477.75		2,403.42
902	Realized Loss - Investment Securities	33,230.00		35,223.80		38,746.18		32,934.25		31,946.23
	Total	8,923,693.00	8,923,693.00	9,590,924.10	9,590,924.10	10,471,010.79	10,471,010.79	10,236,962.32	10,236,962.32	9,985,658.76	9,985,658.76
	Total Expenses and Revenue	4,133,217.00	4,355,760.00	4,381,210.02	4,617,105.60	4,819,331.02	5,078,816.16	4,096,431.37	4,316,993.74	3,973,538.43	4,187,483.92
	Net Income (Loss)	222,543.00		235,895.58		259,485.14		220,562.37		213,945.50


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	7/31/20	7/31/19	7/31/18	7/31/17	7/31/16
Sales Revenue
Sales	4,256,800.00	4,512,208.00	4,963,428.80	4,218,914.48	4,092,347.05
Cost of Goods Sold	1,485,698.00	1,574,839.88	1,732,323.87	1,472,475.29	1,428,301.03
Gross Profit	2,771,102.00	2,937,368.12	3,231,104.93	2,746,439.19	2,664,046.02
Operating Expenses
Wage Expense (hourly workers)	756,894.00	802,307.64	882,538.40	750,157.64	727,652.91
Salaries Expense (Exempt Staff)	800,000.00	848,000.00	932,800.00	792,880.00	769,093.60
Marketing Expense	295,000.00	312,700.00	343,970.00	292,374.50	283,603.27
Travel and Entertainment Expense	56,789.00	60,196.34	66,215.97	56,283.58	54,595.07
Bad Debt Expense	42,185.00	44,716.10	49,187.71	41,809.55	40,555.27
Property Tax Expense	500,000.00	530,000.00	583,000.00	495,550.00	480,683.50
Office Maintenance & Repair Expense	2,000.00	2,120.00	2,332.00	1,982.20	1,922.73
Accounting Expenses	10,000.00	10,600.00	11,660.00	9,911.00	9,613.67
Insurance Expense	12,000.00	12,720.00	13,992.00	11,893.20	11,536.40
Utilities Expense	65,450.00	69,377.00	76,314.70	64,867.50	62,921.47
Office Supplies Expense	546.00	578.76	636.64	541.14	524.91
Telecommunications Expense	5,425.00	5,750.50	6,325.55	5,376.72	5,215.42
Depreciation Expense - Building	30,000.00	31,800.00	34,980.00	29,733.00	28,841.01
Depreciation Expense - Equipment	8,500.00	9,010.00	9,911.00	8,424.35	8,171.62
Depreciation Expense - Office Furniture	2,000.00	2,120.00	2,332.00	1,982.20	1,922.73
Total Operating Expenses	2,586,789.00	2,741,996.34	3,016,195.97	2,563,766.58	2,486,853.58
Income from Operations (EBIT)	184,313.00	195,371.78	214,908.96	182,672.61	177,192.44
Other Revenues and Gains
Rent Income	8,000.00	8,480.00	9,328.00	7,928.80	7,690.94
Unrealized Gain - Trading Securities	5,500.00	5,830.00	6,413.00	5,451.05	5,287.52
Realized Gain - Investment Securities	85,460.00	90,587.60	99,646.36	84,699.41	82,158.42
Total Other Revenue and Gains	98,960.00	104,897.60	115,387.36	98,079.26	95,136.88
Other Expenses and Losses
Interest Expense	25,000.00	26,500.00	29,150.00	24,777.50	24,034.18
Unrealized Loss - Trading Securities	2,500.00	2,650.00	2,915.00	2,477.75	2,403.42
Realized Loss - Investment Securities	33,230.00	35,223.80	38,746.18	32,934.25	31,946.23
Total Other Expenses and Losses	60,730.00	64,373.80	70,811.18	60,189.50	58,383.82


Net Income (Loss)	222,543.00	235,895.58	259,485.14	220,562.37	213,945.50

Common Dividends	250,000	300,000	200,000	200,000
Weighted Average Common Shares	50,000	50,000	50,000	50,000
Market Price per Common Share	45.00	55.00	72.00	68.00

Balance Sheet
July 31, 2020, 2019, 2018, 2017, 2016
	7/31/20	7/31/19	7/31/18	7/31/17	7/31/16
ASSETS
Current assets
Cash	334,504.00	361,264.32	404,616.04	441,031.48	432,210.85
Accounts Receivable, net	533,086.00	575,732.88	644,820.83	702,854.70	688,797.61
Merchandise Inventory, net	449,397.00	485,348.76	543,590.61	592,513.77	580,663.49
Office Supplies	5,689.00	6,144.12	6,881.41	7,500.74	7,350.73
Prepaid Insurance	15,400.00	16,632.00	18,627.84	20,304.35	19,898.26
Investments - Equity Trading (Temporary)	120,000.00	129,600.00	145,152.00	158,215.68	155,051.37
Total Current Assets	1,458,076.00	1,574,722.08	1,763,688.73	1,922,420.72	1,883,972.30
Property, plant & equipment
Land	1,550,000.00	1,674,000.00	1,874,880.00	2,043,619.20	2,002,746.82
Building	1,200,000.00	1,296,000.00	1,451,520.00	1,582,156.80	1,550,513.66
Accumulated Depreciation - Building	(750,000.00)	(810,000.00)	(907,200.00)	(988,848.00)	(969,071.04)
Equipment	85,000.00	91,800.00	102,816.00	112,069.44	109,828.05
Accumulated Depreciation - Equipment	(68,000.00)	(73,440.00)	(82,252.80)	(89,655.55)	(87,862.44)
Office Furniture	14,000.00	15,120.00	16,934.40	18,458.50	18,089.33
Accumulated Depreciation - Office Furniture	(12,000.00)	(12,960.00)	(14,515.20)	(15,821.57)	(15,505.14)
Total Property, plant & equipment	2,019,000.00	2,180,520.00	2,442,182.40	2,661,978.82	2,608,739.24
Other Assets
Investments - HTM Long Term	35,400.00	38,232.00	42,819.84	46,673.63	45,740.15
Investments - Equity Long Term	80,000.00	86,400.00	96,768.00	105,477.12	103,367.58
Valuation Allowance	52,000.00	56,160.00	62,899.20	68,560.13	67,188.93
Total Other Assets	167,400.00	180,792.00	202,487.04	220,710.87	216,296.66
Total Assets	3,644,476.00	3,936,034.08	4,408,358.17	4,805,110.40	4,709,008.20

LIABILITIES & STOCKHOLDER'S EQUITY
LIABILITIES
Current Liabilities
Accounts Payable	680,980.00	735,458.40	823,713.41	897,847.61	879,890.66
Unearned Rent	10,000.00	10,800.00	12,096.00	13,184.64	12,920.95
Customer Refunds Payable	18,795.00	20,298.60	22,734.43	24,780.53	24,284.92
Total Current Liabilities	709,775.00	766,557.00	858,543.84	935,812.79	917,096.53
Long-term Liabilities
Notes Payable - Long Term	650,000.00	702,000.00	786,240.00	857,001.60	839,861.57
Bonds Payable	1,300,000.00	1,404,000.00	1,572,480.00	1,714,003.20	1,679,723.14
Premium on Bonds Payable	56,000.00	60,480.00	67,737.60	73,833.98	72,357.30
Discount on Bonds Payable	(16,000.00)	(17,280.00)	(19,353.60)	(21,095.42)	(20,673.52)
Mortgage (Warehouse) Payable	300,000.00	324,000.00	362,880.00	395,539.20	387,628.42
Total Long-term Liabilities	2,290,000.00	2,473,200.00	2,769,984.00	3,019,282.56	2,958,896.91
Total Liabilities	2,999,775.00	3,239,757.00	3,628,527.84	3,955,095.35	3,875,993.44

STOCKHOLDER'S EQUITY
Common Stock, $1 Par, 100,000 Authorized; 50,000 shares Issued/Outstanding	50,000.00	50,000.00	50,000.00	50,000.00	50,000.00
Paid In Capital - Excess of Par, Common Stock	347,575.25	381,694.33	361,143.16	490,813.03	484,375.09
Treasury Stock	(50,000.00)	(60,000.00)	(20,000.00)	(20,000.00)	(10,000.00)
Cash Dividends	(250,000.00)	(300,000.00)	(200,000.00)	(200,000.00)	(200,000.00)
Ending Retained Earnings	547,125.75	624,582.75	588,687.17	529,202.03	508,639.67
Total Stockholder's Equity	644,701.00	696,277.08	779,830.33	850,015.06	833,014.76

Total Liabilities and Stockholder's Equity	3,644,476.00	3,936,034.08	4,408,358.17	4,805,110.41	4,709,008.19


TOTAL ASSETS	3,644,476.00	3,936,034.08	4,408,358.17	4,805,110.40	4,709,008.20
TOTAL LIAB & EQUITY	3,644,476.00	3,936,034.08	4,408,358.17	4,805,110.41	4,709,008.19
VARIANCE	-	0	0	0	0

Ratio Analysis
July 31, 2020, 2019, 2018
Instructions: Calculate each of the below ratios for the JUST THE current year. FOLLOW the below steps to complete the ratio analysis:
1. Round ALL answers 2 decimal places
2. Must USE ratio descriptions - including how averages are calculated. For example if average A/R is required, students would input beginng A/R, ending A/R, and average A/R as the description and then import corresponding amounts or formulas.
3. MUST use excel formulas and links to IS comparative worksheets, BS comparative worksheets, or adjusted trial balance within this workbook (see current ratio for example of how answers are to look)
4. MUST indicate if current year answer is favorable, unfavorable, or same in realtion to prior year AND industry (see current ratio for example)
5. USE information at bottom of this worksheet to calculate certain ratios
6. If a portion of a ratio is not available, still use in ratio description and use 0 as part of formula
8. USE ratios and comparative statements to write a memo to Davenport Docking management explaining your findings

	7/31/20		7/31/19	7/31/18	INDUSTRY	Prior Year/Industry: Favorable, Unfavorable, Same
Liquidity
Current Ratio	2.05	1	2.10	2.10	2.25	Prior Year - Unfavorable
Current Assets	1,458,076		1,574,722	1,763,689		Industry - Unfavorble
Current Liabilities	709,775		766,557	858,544

Quick Ratio		2	1.39	1.39	1.20
			361,264.32	404,616.04
			575,732.88	644,820.83
			129,600.00	145,152.00
			766,557.00	858,543.84

Accounts Receivable Turnover		3	7.39	7.37	8.50
			4,512,208.00	4,963,428.80
			644,820.83	702,854.70
			575,732.88	644,820.83
			610,276.85	673,837.76

Inventory Turnover		4	3.06	3.05	2.50
			1,574,839.88	1,732,323.87
			543,590.61	592,513.77
			485,348.76	543,590.61
			514,469.69	568,052.19

Profitability

Times Interest Earned		5	9.90	9.90	15.88
			235,895.58	259,485.14
			26,500.00	29,150.00
			26,500.00	29,150.00

Asset Turnover		6	1.08	1.08	1.02
			4,512,208.00	4,963,428.80
			4,408,358.17	4,805,110.40
			3,936,034.08	4,408,358.17
			4,172,196.12	4,606,734.29

Return on Assets		7	6.29%	6.27%	10.50%
			235,895.58	259,485.14
			26,500.00	29,150.00
			4,408,358.17	4,805,110.40
			3,936,034.08	4,408,358.17
			4,172,196.12	4,606,734.29

Return on Common Shareholders' Equity		8	31.96%	31.84%	35.50%
			235,895.58	259,485.14
			-	-
			779,830.33	850,015.06
			696,277.08	779,830.33
			738,053.71	814,922.70

Earnings per Share (EPS)		9	$ 4.72	$ 5.19	$ 3.05
			235,895.58	259,485.14
			-	-
			50,000	50,000

Price-Earnings (P/E ) Ratio		10	11.66	13.87	9.95
			55.00	72.00
			4.72	5.19

Dividends per Share		11	$ 6.00	$ 4.00	$ 2.00
			300,000.00	200,000.00
			50,000.00	50,000.00


Solvency Ratios

Ratio of Liabilities to Stockholder's Equity		12	4.65	4.65	0.80
			3,239,757	3,628,528
			696,277	779,830

	7/31/20		7/31/19	7/31/18
Common Dividends	250,000		300,000	200,000
Weighted Average Common Shares	50,000		50,000	50,000
Market Price per Share	45		55	72

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