Sales COGS Gross margin Operating expenses Operating income Interest expense Income before taxes Income taxes (40%)...

 

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Sales COGS Gross margin Operating expenses Operating income Interest expense Income before taxes Income taxes (40%) Net income Assets Cash A/R (net) Inventory Prepaid expenses Total current assets Capital assets (net) Total assets Patel's Fabrics Ltd. Comparative Income Statements 2016 $ 2016% 599, 100 291,000 308,100 106,200 201,900 11,200 190,700 76,280 114,420 2017 $ 538,900 259,200 279,700 104,600 175,100 10,500 164,600 65,840 98,760 Patel's Fabrics Ltd. Comparative Balance Sheets 32,000 126,860 60,000 11,000 229,860 668,900 898,760 2016 $ 2016% 2017 $ 25,800 127,000 80,700 10,000 243,500 576,000 819,500 2017% 2017% 2018 $ 508,100 234,300 273,800 104,100 169,700 11,900 157,800 63,120 94,680 2018 $ 20,500 94,300 56,000 4,600 175,400 540,300 715,700 2018% 2018% Liabilities & Shareholders' Equity Accounts payable Accrued expenses Total current liabilities Long-term debt Total liabilities Common stock ($0.50 par value) Additional paid in capital Retained earnings 53,120 11,000 64,120 170,000 234,120 6,000 99,000 559,640 664,640 898,760 81,200 12,240 93,440 160,000 253,440 $ 38.00 6,000 99,000 461,060 566,060 819,500 Total equity Total liabilities & equity Closing Stock Price Required: 1. Prepare a horizontal analysis for all 3 years. Use %, not dollars. What significant changes do you see? $ 35.00 79,100 41,700 120,800 150,000 270,800 5,000 62,000 377,900 444,900 715,700 $ 30.00 2. Prepare common-size financial statements for all 3 years. What significant changes do you see? 3.Assess Patel's liquidity by using liquidity ratios. Is the company's position improving or deteriorating? Explain your answer. 4. Assess Pippin's profitability by using profitability ratios. For ratios that require average balances calculate them for 2017 & 2018 only. Assess's Patel's profitability using these ratios. 5. How does the stock market view Pippin's performance over thses three years? Explain the basis for your answer. 6. After you have completed the above analysis, identify what you consider to be the three most significant weaknesses in Patel's performance. Sales COGS Gross margin Operating expenses Operating income Interest expense Income before taxes Income taxes (40%) Net income Assets Cash A/R (net) Inventory Prepaid expenses Total current assets Capital assets (net) Total assets Patel's Fabrics Ltd. Comparative Income Statements 2016 $ 2016% 599, 100 291,000 308,100 106,200 201,900 11,200 190,700 76,280 114,420 2017 $ 538,900 259,200 279,700 104,600 175,100 10,500 164,600 65,840 98,760 Patel's Fabrics Ltd. Comparative Balance Sheets 32,000 126,860 60,000 11,000 229,860 668,900 898,760 2016 $ 2016% 2017 $ 25,800 127,000 80,700 10,000 243,500 576,000 819,500 2017% 2017% 2018 $ 508,100 234,300 273,800 104,100 169,700 11,900 157,800 63,120 94,680 2018 $ 20,500 94,300 56,000 4,600 175,400 540,300 715,700 2018% 2018% Liabilities & Shareholders' Equity Accounts payable Accrued expenses Total current liabilities Long-term debt Total liabilities Common stock ($0.50 par value) Additional paid in capital Retained earnings 53,120 11,000 64,120 170,000 234,120 6,000 99,000 559,640 664,640 898,760 81,200 12,240 93,440 160,000 253,440 $ 38.00 6,000 99,000 461,060 566,060 819,500 Total equity Total liabilities & equity Closing Stock Price Required: 1. Prepare a horizontal analysis for all 3 years. Use %, not dollars. What significant changes do you see? $ 35.00 79,100 41,700 120,800 150,000 270,800 5,000 62,000 377,900 444,900 715,700 $ 30.00 2. Prepare common-size financial statements for all 3 years. What significant changes do you see? 3.Assess Patel's liquidity by using liquidity ratios. Is the company's position improving or deteriorating? Explain your answer. 4. Assess Pippin's profitability by using profitability ratios. For ratios that require average balances calculate them for 2017 & 2018 only. Assess's Patel's profitability using these ratios. 5. How does the stock market view Pippin's performance over thses three years? Explain the basis for your answer. 6. After you have completed the above analysis, identify what you consider to be the three most significant weaknesses in Patel's performance.

Answer rating: 100% (QA)

1 2 3 4 Sales 5 COGS 6 Gross margin 7 Operating expenses 8 Operating income 9 Interest expense 10 In... View the full answer