Question: Start with the partial model in the file Ch03 P15 Build a Model.xlsx from the textbooks Web site. Joshua & White (J&W) Technologys financial statements
Start with the partial model in the file Ch03 P15 Build a Model.xlsx from the textbooks Web site. Joshua & White (J&W) Technologys financial statements are also shown here. Answer the following questions. (Note: Industry average ratios are provided in Ch03 P15 Build a Model.xlsx.)
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Has J&Ws liquidity position improved or worsened? Explain.
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Has J&Ws ability to manage its assets improved or worsened? Explain.
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How has J&Ws profitability changed during the last year?
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Perform an extended DuPont analysis for J&W for 2018 and 2019. What do these results tell you?
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Perform a common size analysis. What has happened to the composition (that is, percentage in each category) of assets and liabilities?
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Perform a percentage change analysis. What does this tell you about the change in profitability and asset utilization?
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