Riverside Sweets, a retail candy store chain, reported the balance sheets for 2018 and 2019, and the income statement for 2019.

Additional financial information:

a. 75% of net sales are on account.

b. Market price of stock is $36 per share on June 30, 2019.

c. Annual dividend for 2019 was $1.50 per share.

d. All short-term investments are cash equivalents.

Perform a horizontal analysis on the balance sheet for 2018 and 2019.

Perform a vertical analysis on the income statement. Use a minus sign or parentheses for any decreases.

Compute the following ratios. Do not round your calculations. (26 pts)

a. Working Capital

b. Current Ratio

c. Acid-Test (Quick) Ratio

d. Cash Ratio

e. Accounts Receivable Turnover

f. Days' Sales in Receivables

g. Inventory Turnover

h. Days' Sales in Inventory

i. Gross Profit Percentage

j. Debt Ratio

k. Debt to Equity Ratio

l. Times-Interest-Earned Ratio

m. Profit Margin Ratio

n. Rate of Return on Total Assets

o. Asset Turnover Ratio

p. Rate of Return on Common Stockholders' Equity

q. Earnings per Share (EPS)

r. Price/Earnings Ratio

s. Dividend Yield

t. Dividend Payout

Financial Statement Analysis

Using Excel for financial analysis

Riverside Sweets, a retail candy store chain, reported the following figures:

RIVERSIDE SWEETS Balance SheetJune 30, 2018 and 2019

2019 2018 Assets

Current Assets:Cash$125,000$119,000

Short-term Investments685,000650,000

Accounts Receivable225,000198,000

Merchandise Inventory65,00070,000

Other Current Assets195,000191,000

Total Current Assets1,295,0001,228,000

Property, Plant, and Equipment875,000832,000

Total Assets$2,170,000$2,060,000

Liabilities

Current Liabilities:

Accounts Payable$265,000$251,750

Accrued Liabilities641,000725,523

Total Current Liabilities906,000977,273

Long-term LiabilitiesBonds Payable250,000150,000

Mortgage Payable150,000175,000

Total Long-term Liabilities400,000325,000

Total Liabilities1,306,0001,302,273

Stockholders' Equity

Common Stock, $1 par, 225,000 shares issued and outstanding225,000225,000

Paid-In Capital in Excess of Par58,00058,000

Retained Earnings581,000474,727

Total Stockholders' Equity864,000757,727

Total Liabilities and Stockholders' Equity$2,170,000$2,060,000

RIVERSIDE SWEETS

Income StatementYear Ended June 30, 2019

Net Sales$2,800,000

Cost of Goods Sold1,551,600

Gross Profit1,248,400

Operating Expenses450,540

Operating Income797,860

Other Income and (Expenses) 0

Interest Expense 15,000

Income Before Income Taxes782,860

Income Tax Expense153,529

Net Income$629,331

Additional financial information:

a.75% of net sales are on account.

b.Market price of stock is $36 per share on June 30,2019.

c.Annual dividend for 2019 was $1.50 per share.

d.All short-term investments are cash equivalents.