Based on your financial statements (from Part 1), calculate the following ratios for the two years. Show all your calculations in good form. Show your formulas. If you use excel, each calculation need to show the excel formula

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Home>Business & Finance homework help>Management homework help>Based on your financial statements (from Part 1), calculate the following ratios for the two years. Show all your calculations in good form. Show your formulas. If you use excel, each calculation need to show the excel formula

Part 1A & 1B

Adams Stores, Inc. Adams Stores, Inc.
Income Statement December 31, 2016 December 31, 2017
For the year ended 2016 and 2017 $ $
2,016 2,017 ASSETS
$ $ Current Assets:
Sales 3,432,000 5,834,400 Cash 9,000 7,282
Cost of Goods Sold 2,864,000 4,980,000 Short-term Investments 48,600 20,000
Gross Profit 568,000 854,400 Accounts Receivable 351,200 632,160
Inventory 715,200 1,287,360
Operating Expenses Total Current Assets 1,124,000 1,946,802
Depreciation 18,900 116,960
Other Expenses 340,000 720,000 Non-current Assets:
Total Operating Expenses 358,900 836,960 Fixed Assets 491,000 1,202,950
(Less Accumulated Depreciation) (146,200) (263,160)
Operating Income 209,100 17,440 Total Non-current Assets 344,800 939,790
Interest Expenses 62,500 176,000 Total Assets 1,468,800 2,886,592
Net Income before Tax 146,600 (158,560)
Income Tax Expenses 58,640 (63,424) LIABILITIES AND SHAREHOLDERS' EQUITY:
Net Income after Tax 87,960 (95,136) Current Liabilities:
Accounts Payable 145,600 324,000
Notes Payable 200,000 720,000
Adams Stores, Inc. Accurals 136,000 284,960
Statement of Retained Earnings Total Current Liabilities 481,600 1,328,960
For the year ended 2017
Beginning Retained Earnings 203,768 Long-term Liabilities:
Add: Net Income Earned in 2017 (95,136) Long-term Debt 323,432 1,000,000
Less: Dividends Paid in 2017 11,000 Total Long-term Liabilities 323,432 1,000,000
Ending Retained Earnings 97,632 Total Liabilities 805,032 2,328,960
Shareholders' Equity
Common Stock 460,000 460,000
Retained Earnings 203,768 97,632
Total Shareholders' Equity 663,768 557,632
Total Liabilities and Shareholders' Equity 1,468,800 2,886,592

Part 1C

Balance Sheet
December 31, 2016 % December 31, 2017 %
ASSETS
Total Current Assets 1,124,000 76.50% 1,946,802 67%
Other Expenses $340,000 23.50% $720,000 33%
Total Assets 1,468,800 100% 2,886,592 100%
Liabilities
Total Current Liabilities 481,600 33.00% 1,328,960 46%
Long-term Debt 323,432 22.00% 1,000,000 35%
Total Liabilities 805,032 55.00% 2,328,960 81%

Part 1D

Statement of Cash Flow
December 31, 2016 December 31, 2017
Operations
Sales $ 3,432,000.00 $ 5,834,400.00
Cash $ 9,000.00 $ 7,282.00
Retained Earnings $ 203,768.00 $ 97,632.00
cost of good sold $ (2,864,000.00) $ (4,980,000.00)
Inventory $ (715,200.00) $ (1,287,360.00)
Accumulated Depreciatio $ (146,200.00) $ (263,160.00)
Depreciation $ (18,900.00) $ (116,960.00)
Interest $ (62,500.00) $ (176,000.00)
Other Expenses $ (340,000.00) $ (720,000.00)
Income taxes $ (58,640.00) $ (63,424.00)
Net Cash Flow from Operations $ (560,672.00) $ (1,667,590.00)
Investing Activities
fixed assets $ (491,000.00) $ (1,202,950.00)
Net Cash Flow from Investing Activities $ (491,000.00) $ (1,202,950.00)
Financing Activities
accounts Recevable $ 351,200.00 $ 632,160.00
Long-Term Debt $ 323,432.00 $ 1,000,000.00
accounts Payable $ (145,600.00) $ (324,000.00)
Short Term Investments $ (48,600.00) $ (20,000.00)
Notes Payble $ (200,000.00) $ (720,000.00)
Net Cash Flow from Financing Activities $ 280,432.00 $ 568,160.00
Net Increase in Cash $ (771,240.00) $ (2,302,380.00)