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Vertical Analysis 3. Ratio Analysis 4. Conclusions/Recommendations Bailey Ltd.
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can you please help me with the following :
2.Vertical Analysis
3.Ratio Analysis
4.Conclusions/Recommendations
Bailey Ltd.
Balance Sheet
As at December 31, 2016
Cash$66,000
Accounts Receivable(net) ***241,000
Inventory87,000
Prepaid Expenses12,000
Plant and Equipment(net)792,000
$1,198,000
Accounts Payable & Accrued Liabilities$191,000
Long-term Debt635,000
Common Shares**50,000
Retained Earnings322,000
$1,198,000
Bailey Ltd.
Income Statement
For the year ended December 31, 2016
Sales *$2,797,000
Cost of Goods Sold1,790,000
Gross Margin1,007,000
Operating Expenses770,000
Depreciation Expense37,000
Operating Income200,000
Interest Expense70,000
Income before Income Tax130,000
Income Tax Expense52,000
Net Income(Loss)$78,000
** Avg. common shares issued and outstanding 22,000 shares
*** A/R for 2015 was $230,000
Equity for 2015 was$310,000
total assets for 2015 was$1,050,000
inventory for 201585,000
dividend 201660,000
Snoopy Ltd.
Balance Sheet
As at December 31, 2016
Cash$27,000
Accounts Receivable(net)***262,000
Inventory110,000
Prepaid Expenses7,000
Plant and Equipment(net)704,000
$1,110,000
Accounts Payable & Accrued Liabilities$173,000
Long-term Debt310,000
Common Shares**200,000
Retained Earnings427,000
$1,110,000
** Avg. common shares issued and outstanding 25,000 shares
*** A/R for 2015 was 230,000
Equity for 2015 was$620,000
Total assets for 2015 was1,000,000
inventory for 2015112,000
dividend 201655,000
* all Sales made on credit
Snoopy Ltd.
Income Statement
For the year ended December 31, 2016
Sales *$2,454,000
Cost of Goods Sold1,594,000
Gross Margin860,000
Operating Expenses632,000
Depreciation Expense31,000
Operating Income197,000
Interest Expense43,000
Income before Income Tax154,000
Income Tax Expense62,000
Net Income(Loss)92,000
* all Sales made on credit