You are to create kelly’s boutique’s financial analyses as of december 31,2018, and as of december 31, 2019. following the chapter 3 examples, use thestudent file ch3-04.xls to create a vertical and horizontal analysis of the balancesheet and income statement in the columns provided. (note: the horizontal analysis will compare december 31, 2018, with december 31, 2019.) in addition, create a pie chart of expenses for the year ended december 31, 2019; a column chart (in a format of your choice) of expenses for the years ended decmber 31, 2018, and 2019; and a ratio analysis as of december 31, 2019.
print each completed worksheet in value view, with your name and date printed in the lower left footer and the file name in the lower right footer.
what sup, inc.
income statement
for the year ended
12/31/18 12/31/19 % of sales % change
sales revenue $850,000.00 $950,000.00
less: cost of goods sold 445,000.00 500,000.00
gross margin 405,000.00 450,000.00
expenses:
advertising 18,000.00 30,000.00
depreciation 28,000.00 25,000.00
interest 30,000.00 50,000.00
payroll 115,000.00 160,000.00
utilities 45,000.00 35,000.00
net income before taxes169,000.00 150,000.00
income taxes 66,000.00 30,000.00
net income $103,000.00 $120,000.00
what sup, inc.
balance sheet
as of
assets 12/31/18 12/31/19 % of assets % change
current assets:
cash $24,000.00 $35,000.00
accounts receivable 56,000.00 60,000.00
inventory 100,000.00 93,000.00
prepaid expenses 13,000.00 10,000.00
supplies 7,000.00 8,000.00
property, plant, and equipment:
land 120,000.00 120,000.00
building 250,000.00 300,000.00
equipment 50,000.00 67,000.00
less: accumulated depreciation (70,000.00) (93,000.00)
total $550,000.00 $600,000.00
liabilities and stockholders' equity
liabilities
current liabilities:
accounts payable $75,000.00 $98,000.00
payroll liabilities 2,000.00 6,000.00
notes payable 35,000.00 25,000.00
long-term debt 220,000.00 150,000.00
stockholders' equity
common stock 10,000.00 10,000.00
retained earnings 208,000.00 311,000.00
total $550,000.00 $600,000.00
what sup, inc.
ratio analysis
ratio analysis 2019
profitability liquidity solvency
return on owners' investment current ratio debt-to-equity
return on total investment quick ratio liability
profit margin receivable turnover
gross margin inventory turnover