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QUESTION

Vertical Analysis 3. Ratio Analysis 4. Conclusions/Recommendations Bailey Ltd.

:

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

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