Question

Assignment 2 Home Insert Draw Page Layout Formulas Data Review View Share t Wrap TextGeneral E Marge & Conter. Paste Format B 1 υν 田v 오 v 스 롤ニーーー $ v % , 'il 웨 conditional Forable Styles i nscrt Delete Format Sort & XClearv A175 x f What this tells me about the change in profitability and asset utilization Joshua& White Technologies: December 31 Balance Sheets Joshua&White Technologies Decomber 31 Income Statementas COGS except excluding depr. and amort. meres Expense 20,000 4,000 Sinking fund payment(Thous ands of Dolars$,000$5,000 e payment(Thous ands of Dolars 困回凹 2

Consider the following scenario: Your boss has come to you for advice on the current finances of the company and needs you to create an extended DuPont analysis, common size analysis, and percentage change analysis. Your boss wants you to fill out the attached Excel file because he/she has no idea what she is talking about and is going to use your report as her work. Remember to answer all the questions in the attached document. Has J&W's liquidity position improved or worsened? Explain Has J&W's ability to manage its assets improved or worsened? Explain How has J&W's profitability changed during the last year? Perform an extended DuPont analysis for J7W for 2015 and 2016. What do these results tell you? Perform a common size analysis. What has happened to the composition (That is, the percentage in each category) of assets and liabilities? Perform a percentage change analysis. What does this tell you about the change in profitability and asset utilization?

***Section 'F' is the only section I need.

Answer 1

Percentage Change Balance Sheet

Assets	2016	2015	Dollar Change	Percentage Change
Cash and Cash Equivalents	$21000	$20000	+ $1000	+ 5%
Short Term Investments	3759	3240	+ 519	+ 16.02 %
Accounts Receivable	52500	48000	+ 4500	+9.37 %
Inventories	84000	56000	+ 28000	+ 5%
Total Current Assets	$161259	$127240	+ 34019	+ 26.74%
Net Fixed Assets	218400	200000	+ 18400	+ 9.2%
Total Assets	$379659	$327240	+ 52419	+16.02%
Liabilities and equity
Accounts payable	$33600	$32000	+ $1600	+ 5 %
Accruals	12600	12000	+ 600	+ 5%
Notes payable	19929	6480	+ 13449	+ 207.55%
Total Current Liabilities	$66,129	$50,480	+ 15649	+ 31%
Long-term debt	67,662	58,320	+ 9342	+16%
Total Liabilities	$1,33,791	$1,08,800	+24991	+ 22.97%
Common stock	1,83,793	1,78,440	+ 5353	+ 3%
Retained earnings	62,075	40,000	+ 22075	+55.19%
Total Common equity	$2,45,868	$2,18,440	+ 27,428	+12.56%
Total Liabilities and equity	$379,659	$3,27,240	+ 52,419	+16.02%

Percentage Change Income Statement	2016	2015	Dollar Change	Percentage Change
Sales	$420,000	$400,000	+ $20000	+5%
COGS	300,000	298,000	+ 2000	+0.67%
Depreciation and Amortization	19,660	18000	+1660	+9.22%
Other operating expenses	27600	22000	+5600	+25.45%
EBIT	$72740	$61,600	+11,140	+18.08%
Interest Expense	5740	4460	+1,280	+28.70%
EBT	67,000	57,540	+9460	+16.44%
Taxes	26,800	23,016	+3784	+16.44%
Net Income	40,200	34,524	+5,676	+16.44%

The profit has increased by 16.44% and the total assets have increased by 16.02%.