Suppose that you have decided to invest some money in the stock market. After some research...

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Suppose that you have decided to invest some money in the stock market. After some research online, you come across the financial statements of Young Wireless Limited. Before you can make a decision to invest in the company, you will need to calculate some key financial ratios and then analyze them. The statements are presented below. Young Wireless Limited Consolidated Balance Sheet (in thousands) As at February 28 2019 2018 Assets Cash $ 1,550,000 $ 840,000 Short-term investments $ 370,000 $ 680,000 Accounts receivable Merchandise inventory $ 2,800,000 $ 2,270,000 $ 620,000 $ 680,000 Other current assets $ 480,000 $ 370,000 Total current assets $ 5,820,000 $ 4,840,000 Long-term investment 960,000 $ 720,000 Property, plant and equipment 1,960,000 $ 1,350,000 Intangible assets $ 1,480,000 $ 1,210,000 Total assets $ 10,220,000 8,120,000 Liabilities Accounts payable $ 620,000 $ 450,000 Accrued liabilities $ 1,640,000 $1,240,000 Income taxes payable $ 96,000 $ 360,000 Other current liabilities $ 82,000 $ 67,000 Total current liabilities $ 2,438,000 $ 2,117,000 Long-term liabilities $ 170,000 $ 110,000 Total liabilities Stockholders' Equity Common stock $ 2,608,000 $2,227,000 Retained earnings Stockholders' Equity Liabilities and Stockholders' Equity Young Wireless Limited [[[ $ 2,110,000 $ 2,210,000 5,502,000 $ 3,683,000 7,612,000 $ 5,893,000 $ 10,220,000 $ 8,120,000 Consolidated Income Statement (in thousands) For the year Ended February 28 2019 2018 Revenue $ 14,950,000 $ 11,100,000 Cost of sales $ 8,460,000 $ 5,970,000 Gross profit $ 6,490,000 $5,130,000 Operating expenses Research and development $ 960,000 $ 680,000 Selling, marketing and admin $ 1,910,000 $ 1,490,000 Amortization expense $ 310,000 $ 195,000 Litigation expense $ 165,000 $ Total operating expenses $ 3,345,000 $ 2,400,000 Income from operations $ 3,145,000 $ 2,730,000 Other income and expenses Investment income Income before income tax expense Income tax expense Net income $ 29,600 $ 78,000 $ 3,174,600 $ 2,808,000 $ 820,000 $ 910,000 $ 2,354,600 $ 1,898,000 Young Wireless Limited Summary of the Statement of Cash Flows (in thousands) For the year Ended February 28 2019 Net cash provided by operations $ 3,035,000 $ Net cash used by investing $ (1,470,000) $ 2018 1,450,000 (1,825,000) Net cash used by financing $ (850,000) $ (22,850) Net increase (decrease) in Cash $ 717,019 $ (395,832) Part a) Calculate the following ratios for Young Wireless Limited for 2019 and 2018. For any ratios that require an average (i.e. ROE), use the closing balance for the year. 2019 2018 Gross Profit Margin Net Profit Margin Return on Equity Return on Assets Asset Turnover Current Ratio Quick Ratio Debt-to-Equity Ratio Part b) Based on the figures you calculated, has the company shown improvement in 2019 over 2018? Would you invest in Young Wireless Limited? Explain. CS-2 Information provided: The following information has been taken from the financial statements of Ivory Inc. Ivory Inc. Current Assets, December 31, 2019 Total Assets, January 1, 2019 Total Assets, December 31, 2019 Current Liabilities, December 31, 2019 Total Liabilities, December 31, 2019 Stockholders' Equity, January 1, 2019 Stockholders' Equity, December 31, 2019 Net Sales Depreciation Expense Interest Expense Income Tax Expense Net Income $ 185,000 $ 520,000 $ 595,000 $ 85,000 $ 195,000 310,000 $ 450,000 sssss is es 940,000 15,000 $ 21,000 24,000 45,000 Part a) Given the data for Ivory Inc., calculate the following ratios for 2019 (round to two decimal places). The company's ratios for 2018 are given for comparison. Ratio Current Ratio Times Interest Earned Ratio Debt-to-Equity Ratio Return on Assets Return on Equity Net Profit Margin Ratio Current Ratio Times Interest Earned Ratio |Debt-to-Equity Ratio Return on Assets Return on Equity 2018 3.5 5.40 25.00% 12.50% 20.20% 8.60% 2019 Net Profit Margin Part b) Using 2019 as a comparison, discuss whether the company improved or deteriorated in its ability to (i) pay current liabilities as they come due, (ii) meet its long-term debt obligations and (iii) profitability. Be sure to make reference to specific ratios in your answers. liii Suppose that you have decided to invest some money in the stock market. After some research online, you come across the financial statements of Young Wireless Limited. Before you can make a decision to invest in the company, you will need to calculate some key financial ratios and then analyze them. The statements are presented below. Young Wireless Limited Consolidated Balance Sheet (in thousands) As at February 28 2019 2018 Assets Cash $ 1,550,000 $ 840,000 Short-term investments $ 370,000 $ 680,000 Accounts receivable Merchandise inventory $ 2,800,000 $ 2,270,000 $ 620,000 $ 680,000 Other current assets $ 480,000 $ 370,000 Total current assets $ 5,820,000 $ 4,840,000 Long-term investment 960,000 $ 720,000 Property, plant and equipment 1,960,000 $ 1,350,000 Intangible assets $ 1,480,000 $ 1,210,000 Total assets $ 10,220,000 8,120,000 Liabilities Accounts payable $ 620,000 $ 450,000 Accrued liabilities $ 1,640,000 $1,240,000 Income taxes payable $ 96,000 $ 360,000 Other current liabilities $ 82,000 $ 67,000 Total current liabilities $ 2,438,000 $ 2,117,000 Long-term liabilities $ 170,000 $ 110,000 Total liabilities Stockholders' Equity Common stock $ 2,608,000 $2,227,000 Retained earnings Stockholders' Equity Liabilities and Stockholders' Equity Young Wireless Limited [[[ $ 2,110,000 $ 2,210,000 5,502,000 $ 3,683,000 7,612,000 $ 5,893,000 $ 10,220,000 $ 8,120,000 Consolidated Income Statement (in thousands) For the year Ended February 28 2019 2018 Revenue $ 14,950,000 $ 11,100,000 Cost of sales $ 8,460,000 $ 5,970,000 Gross profit $ 6,490,000 $5,130,000 Operating expenses Research and development $ 960,000 $ 680,000 Selling, marketing and admin $ 1,910,000 $ 1,490,000 Amortization expense $ 310,000 $ 195,000 Litigation expense $ 165,000 $ Total operating expenses $ 3,345,000 $ 2,400,000 Income from operations $ 3,145,000 $ 2,730,000 Other income and expenses Investment income Income before income tax expense Income tax expense Net income $ 29,600 $ 78,000 $ 3,174,600 $ 2,808,000 $ 820,000 $ 910,000 $ 2,354,600 $ 1,898,000 Young Wireless Limited Summary of the Statement of Cash Flows (in thousands) For the year Ended February 28 2019 Net cash provided by operations $ 3,035,000 $ Net cash used by investing $ (1,470,000) $ 2018 1,450,000 (1,825,000) Net cash used by financing $ (850,000) $ (22,850) Net increase (decrease) in Cash $ 717,019 $ (395,832) Part a) Calculate the following ratios for Young Wireless Limited for 2019 and 2018. For any ratios that require an average (i.e. ROE), use the closing balance for the year. 2019 2018 Gross Profit Margin Net Profit Margin Return on Equity Return on Assets Asset Turnover Current Ratio Quick Ratio Debt-to-Equity Ratio Part b) Based on the figures you calculated, has the company shown improvement in 2019 over 2018? Would you invest in Young Wireless Limited? Explain. CS-2 Information provided: The following information has been taken from the financial statements of Ivory Inc. Ivory Inc. Current Assets, December 31, 2019 Total Assets, January 1, 2019 Total Assets, December 31, 2019 Current Liabilities, December 31, 2019 Total Liabilities, December 31, 2019 Stockholders' Equity, January 1, 2019 Stockholders' Equity, December 31, 2019 Net Sales Depreciation Expense Interest Expense Income Tax Expense Net Income $ 185,000 $ 520,000 $ 595,000 $ 85,000 $ 195,000 310,000 $ 450,000 sssss is es 940,000 15,000 $ 21,000 24,000 45,000 Part a) Given the data for Ivory Inc., calculate the following ratios for 2019 (round to two decimal places). The company's ratios for 2018 are given for comparison. Ratio Current Ratio Times Interest Earned Ratio Debt-to-Equity Ratio Return on Assets Return on Equity Net Profit Margin Ratio Current Ratio Times Interest Earned Ratio |Debt-to-Equity Ratio Return on Assets Return on Equity 2018 3.5 5.40 25.00% 12.50% 20.20% 8.60% 2019 Net Profit Margin Part b) Using 2019 as a comparison, discuss whether the company improved or deteriorated in its ability to (i) pay current liabilities as they come due, (ii) meet its long-term debt obligations and (iii) profitability. Be sure to make reference to specific ratios in your answers. liii