Question

Part One Instructions The ancial information for the past 2015 2013 rood in pracht application such as Microtel and the information from the previous arrowse the o ne 1. Prepare a statement of Cash Flows for the current year using the interact method 2. Linhartranta anais, prepare a Comparativ ce Sheet Using wertical aralysts, prepare an income Statement 4. Using the textbook, calculate the ratios set out below Working Capital bath years bCurrent Ratio both years Quick ratio both years Accounts Receivable Tumover 2019 Number of Days Sales in Receivables 2019 (Company policy states 30 days in receivables) f inventory Turnover 2019 # Number of Days Sales in Inventory 2019 Company policy states 50 days to turn over inventory h. Ratio of Liabilities to Stockholders' Equity 2018 and 2019 1. Return on Total Assets 2019 Return on Stockholders' Equity 2019 k Earnings Per Share 2018 and 2019

Answer 1

Robust Robots	horizontal
Balance Sheet
Dec.31 2019 and 2018
Assets	2019($)	2018($)	difference (2019-2018)	(difference/2018)*%
cash	65000	80000	-15000	-18.75%
accounts receivable	150000	100000	50000	50.00%
merchandise inventory	135000	70000	65000	92.86%
supplies	9700	500	9200	1840.00%
prepaid insurance	30000	10000	20000	200.00%
total current assets	389700	260500	129200	49.60%
property, plant and equipment
equipment	500000	240000	260000	108.33%
less:depreciation	-80000	-90000	10000	-11.11%
total property, plant and equipment	420000	150000	270000	180.00%
total assets	809700	410500	399200	97.25%
Liabilities and stockholders equity
current liabilities
accounts payable	150000	40000	110000	275.00%
unearned revenue	40000	50000	-10000	-20.00%
salaries payable	40000	30000	10000	33.33%
federal income tax	10000	10000	0	0.00%
total current liabilities	240000	130000	110000	84.62%
long-term liabilities
note payable	130000	0	130000	0.00%
total long-term liabilities	130000	0	130000	0.00%
total liabilities	370000	130000	240000	184.62%
stockholders equity
common stock	170000	100000	70000	70.00%
paid-in capital excess	43700		43700	0.00%
retained earnings	226000	180500	45500	25.21%
total stockholders equity	439700	280500	159200	56.76%
total liabilities andd stockholders equity	809700	410500	399200	97.25%

Robust Robots
Income Statement
Dec.31 2019 and 2018
	2019	percentage	2018	percentage
sales	700000	100.00%	600000	100.00%
cost of sales	524300	74.90%	420000	70.00%
gross margin	175700	25.10%	180000	30.00%
operating expenses
salaries and wages	47290	6.76%	100000	16.67%
rent expense	20256	2.89%	20000	3.33%
depreciation expense	20000	2.86%	10000	1.67%
total operating expense	87546	12.51%	130000	21.67%
income from operations	88154	12.59%	50000	8.33%
loss on sale of equipment	-5213	-0.74%	0	0.00%
interest expense	-3656	-0.52%	-5000	-0.83%
increase (decrease) in operating income	-8869	-1.27%	-5000	-0.83%
income before taxes	79285	11.33%	45000	7.50%
federal income tax	-23786	-3.40%	-13500	-2.25%
net income	55500	7.93%	31500	5.25%

working capital	current assets - current liabilities
	2019	2018
total current assets	389700	260500
total current liabilities	240000	130000
working capital	149700	130500
current ratio	current assets / current liabilities
	2019	2018
total current assets	389700	260500
total current liabilities	240000	130000
current ratio	1.62	2.00
quick ratio	cash+accounts receivable/current liabilities
	2019	2018
cash	65000	80000
accounts receivable	150000	100000
total quick assets	215000	180000
total current liabilities	240000	130000
quick ratio	0.90	1.38
accounts receivable turnover	sales / average accounts receivable
	2019
sales	700000
opening accounts receivable	100000
closing accounts receivable	150000
average accounts receivable	125000
accounts receivable turnover	5.60
no.of days in receivable	365/accounts receivable turnover
	2019
accounts receivable turnover	5.6
no.of days	65
inventory turnover	cost of goods sold / average inventory
	2019
cost of goods sold	524300
opening inventory	70000
closing inventory	135000
average inventory	102500
inventory turnover	5.12
no.of days inventory	365/inventory turnover
	2019
inventory turnover	5.12
no.of days inventory	71
liabilities to stockholders equity	total liabilities / stockholders equity
	2019	2018
total liabilities	370000	130000
total stockholders equity	439700	280500
liabilities to stockholders equity	0.84	0.46
return on total assets	operating profit / average of total assets
	2019
operating profit	88154
opening assets	410500
closing assets	809700
average assets	610100
return on total assets	0.14
return on stockholders equity	net income / average stockholders equity
	2019
net income	55500
opening equity	280500
closing equity	439700
average equity	360100
return on stockholders equity	0.15
earnings per share	net income / no.of shares
	2019	2018
net income	55500	31500
no.of shares	17000	10000
earnings per share	3.26	3.15