FINANCIAL STATEMENT ANALYSIS

Task

W&Y

W & Y is a large wholesale company selling high-end mountain clothing. It has its own factories in Spain and Morocco and sells in the European market. In 2018, the company changed part of its management team and decided to bet on creating products with a new fiber, investing in new machinery. You are the head of the financial department, and you must present a report for your CEO explaining the company's performance in 2018 (comparing with 2017).

MINI CASE
DATA
W&Y Corporation Balance Sheet
	2017	2018
Cash	$300	$495
Accounts receivable	700	915
Inventories	600	780
Other current assets	125	160
Total current assets	$1.725	$2.350
Gross fixed assets	$4.650	$4.950
Accumulated depreciation	(1.700)	(2.200)
Net fixed assets	$2.950	$2.750
Total assets	$4.675	$5.100
LIABILITIES (DEBT) AND EQUITY
Accounts payable	$400	$640
Short-term notes payable	250	300
Total current liabilities	$650	$940
Long-term debt	$1.250	$1.325
Total liabilities	$1.900	$2.265
Common stock (par & paid in capital)	$1.100	$1.100
Retained earnings	1.675	1.735
Total common equity	$2.775	$2.835
Total liabilities and equity	$4.675	$5.100
W&Y Corporation Income Statement
Sales	$5.700	$5.400
Cost of goods sold	(3.700)	(3.600)
Gross profits	$2.000	$1.800
Operating expenses:
Selling and G&A expenses	($820)	($780)
Depreciation expenses	(340)	(500)
Total operating expenses	($1.160)	($1.280)
Operating income (earnings before interest and taxes)	$840	$520
Interest expense	(200)	(275)
Earnings before taxes	$640	$245
Income taxes	(230)	(65)
Net Income	$410	$180
Number of shares (thousands)	150	150
Dividends ($thousands)	$120	$120
Market price per share	$36	$18

Question

Based on the information Above write a analyses of:

1. The liquidity of the company
2. The efficiency of the company
3. The leverage of the company
4. The profitability of the company