Analyze the financial standing of your company by comparing

Question

Question:

Analyze the financial standing of your company by comparing Company A results from 2016 to Company B for each of the following statements:

• balance sheet

- current ratio

- total assets

- total liabilities & owner's equity

• income statement

- net profit

- contribution margin

- sales

Balance Sheet 2016	Company A	Company B	Company A % of Total Assets	Company B% of Total Assets
Cash	$33,075	$38,694	8.29%	21.30%
Accounts Receivable	$57,800	$17,441	14.49%	9.60%
Inventory	$33,272	$25,351	8.34%	13.96%
Total Current Assets	$124,147	$81,486	31.13%	44.86%
Plant and equipment	$450,920	$186,600
Accumulated Depreciation	($176,261)	($86,427)
Total Fixed Assets	$274,659	$100,173	68.87%	55.14%
Total Assets	$398,806	$181,660	100.00%	100.00%
			Company A % of Total Asset (or Total liabilities & SO equity	Company B % of Total Asset (or Total liabilities & SO equity
Accounts Payable	$13,947	$12,000	3.50%	6.61%
Current Debt	$30,000	$34,827	7.52%	19.17%
Long Term Debt	$145,509	$43,121	36.49%	23.74%
Total Liabilities	$189,456	$89,948	47.51%	49.51%
Common Stock	$29,215	$41,344	7.33%	22.76%
Retained Earnings	$180,135	$50,367	45.17%	27.73%
Total Equity	$209,349	$91,712	52.49%	50.49%
Total Liabilities & Owners' Equity	$398,806	$181,660	100.00%	100.00%
Income Statement 2016	Company A	Company B	Company A % of net sales	Company A % of net sales
Sales	$351,618	$212,203	100.00%	100.00%
Variable Costs (Labor, Material, Carry)	$167,778	$146,012	47.72%	68.81%
Depreciation	$30,061	$12,440	8.55%	5.86%
SGA (R&D, Promo, Sales, Admin)	$36,637	$23,110	10.42%	10.89%
Other (Fees, Writeoffs, TQM, Bonuses)	$1,550	$4,643	0.44%	2.19%
EBIT	$115,591	$25,998	32.87%	12.25%
Interest (Short term, Long term)	$23,200	$10,481	6.60%	4.94%
Taxes	$32,337	$5,431	9.20%	2.56%
Profit Sharing	$1,201	$202	0.34%	0.10%
Net Profit	$58,853	$9,884	16.74%	4.66%
Cash Flow Statement 2015	Company A		Cash Flow Statement 2016	Company A
Cash flows from operating activities			Cash flows from operating activities
Net Income (Loss)	$39,968		Net Income (Loss)	$58,853
Adjustment for non-cash items:			Adjustment for non-cash items:
Depreciation	$25,613		Depreciation	$30,061
Extraordinary gains/losses/writeoffs	$0		Extraordinary gains/losses/writeoffs	$0
Changes in current assets and liabilities:			Changes in current assets and liabilities:
Accounts payable	($4,540)		Accounts payable	$1,338
Inventory	$10,977		Inventory	($5,907)
Accounts receivable	$431		Accounts receivable	($6,201)
Net cash from operations	$72,448		Net cash from operations	$78,145
Cash flows from investing activities			Cash flows from investing activities
Plant improvements (net)	($63,600)		Plant improvements (net)	($66,720)
Cash flows from financing activities			Cash flows from financing activities
Dividends paid	($22,107)		Dividends paid	($16,580)
Sales of common stock	$0		Sales of common stock	$0
Purchase of common stock	$0		Purchase of common stock	$0
Cash from long term debt issued	$23,000		Cash from long term debt issued	$7,000
Early retirement of long term debt	$0		Early retirement of long term debt	$0
Retirement of current debt	($20,850)		Retirement of current debt	$0
Cash from current debt borrowing	$0		Cash from current debt borrowing	$30,000
Cash from emergency loan	$0		Cash from emergency loan	$0
Net cash from financing activities	($19,957)		Net cash from financing activities	$20,420
Net change in cash position	($11,109)		Net change in cash position	$31,844
Cash at Beginning of Year	$12,339		Cash at Beginning of Year	$1,231
Cash at End of Year	$1,231		Cash at End of Year	$33,075