| JAMES CONFECTIONERS |
| Financial Statements |
| | | | | | | | | | | | | Recommendation. Based on the analysis there is one main thing that the company needs to work on. The company needs to improve on its account receivable turnover. The company has a low A/R turnover of 3; it is lagging behind its peers in terms of collections. The company needs to improve on its average collections to increase its liquidity. Higher liquidity improves a company's ability to service its debts and also its ability to increase and improve its inventory. Through improved inventory and sales, the company can improve its profitability. |
| INCOME STATEMENTS | | | | | | | | 20XX RATIO ANALYSIS |
| | | | | 20XX | | | | SUBJECT | | INDUSTRY MEDIAN |
| Sales | | | | $3,897,564 | | | Current | 2.0 | | 1.7 |
| COGS | | | | $2,625,340 | | | Quick | 1.1 | | 0.8 |
| GP | | | | $1,272,224 | | | A/R Turn | 3.0 | | 15.7 |
| SGA Exp. | | | | $912,030 | | | Avg Coll | 3.1 | | 23 |
| Deprec. | | | | $74,054 | | | Inv Turn | 4.6 | | 4.9 |
| EBIT (Oper. Income) | | | | $837,976 |
| Interest | | | | $119,658 | | | OI ROI |
| Other Exp. | | | | $1,248 |
| EBT | | | | $717,070 | | | OPM |
| Income Taxes | | | | $551,836 | | | FA Turn | | 7 | 8.2 |
| Net Income | | | | $165,234 |
| | | | | | | | Debt/TA | | 76% | 70% |
| | | | | | | | Times Int | | 7 | 2.3 |
| BALANCE SHEETS |
| | | | | 20XX | | | ROE | | 21% | 16.5% |
| ASSETS | | | | | | | ROA | | 12% | 5.6% |
| CURRENT ASSETS |
| Cash | | | | $161,254 |
| Accounts Receivable | | | | $507,951 |
| Inventories | | | | $568,421 |
| Other Current | | | | $116,909 |
| TOTAL CURRENT ASSETS | | | | $1,354,535 |
| FIXED ASSETS |
| Gross PP&E |
| Accumulated Depreciation |
| Net PP&E | | | | $556,327 |
| Other Fixed | | | | $104,815 |
| TOTAL ASSETS | | | | $2,015,677 |
| LIABILITIES & EQUITY |
| CURRENT LIABILITIES |
| Accounts Payable/Accruals | | | | $312,430 |
| Short Term Debt | | | | $362,822 |
| TOTAL CURRENT LIABILITIES | | | | $675,252 |
| LONG TERM DEBT | | | | $564,390 |
| STKHLDRS EQUITY |
| Common Stock (par+paid-in) | | | | $1,000 |
| Retained Earnings | | | | $775,036 |
| TOTAL LIABILITIES & EQUITY | | | | $2,015,678 |
liam1998
JamesConfectionersAnalysis1.xlsx
