I need this done within the next day and a half. It’s not a truckload of work, but the price will be reasonable for getting it done in a timely manner.
Financial Statement Analysis Project
Financial Statement Analysis provides information that indicates how a company is performing. By comparing financial statements of different years, a manager can make informed decisions about investments, expenditures, and activities that impact revenues.
Directions
: Read the chapter in the text titled “Financial Statement Analysis.” Using the comparative financial statements for Baby Cakes International Inc. (see “BabyCakes_Financial_Project_Data.xls” linked in the lesson activities) , complete the following tasks.
Note
: The market price of BabyCakes Int’l, Inc. common stock was $20 on December 31, 2008.
Part A: Complete the 19 ratios listed below.
Determine the following measures for 2008:
1. Working Capital
2. Current ratio
3. Quick ratio
4. Accounts receivable turnover
5. Number of days’ sales in receivables
6. Inventory turnover
7. Number of days’ sales in inventory
8. Ratio of fixed assets to long-term liabilities
9. Ratio of liabilities to stockholders’ equity
10. Number of times interest charges earned
11. Number of times preferred dividends earned
12. Ratio of net sales to assets
13. Rate earned on total assets
14. Rate earned on stockholders’ equity
15. Rate earned on common stockholder’s equity
16. Earnings per share on common stock
17. Price-earnings ratio
18. Dividends per share of common stock
19. Dividend yield
Part B: Explain what the results of each ratio indicate about the company.
Part C: Complete a
horizontal
analysis
for the Income Statement, and explain your findings.
Part D: Complete a
vertical analysis
for the Income Statement, and explain your findings.
| Baby Cakes International Inc | |||||||||||||||||||||||||||||||||||||||||||||||||||
| for the Years ended | December 31, | 2008 | 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||
| December 31, 2008 | December 31, 2007 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings, January 1 | $ | 375,000 | $32 | 7,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Net income for year | 68,000 | 67,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Total | $44 | 3,000 | $394,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
| Dividends Paid | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Preferred Stock | $ | 15,000 | $1 | 2,000 | |||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Dividends Paid | $22,000 | $19,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Retained Earnings December 31 | $42 | 1,000 |
| for the Years ended | December 31, 2008 and 2007 | ||
| Sales | $1,055,000 | $966,000 | |
| Sales returns | |||
| Sales Allowances | 1,500 | ||
| Sales Discounts | 2,500 | ||
| Net Sales | $1,050,000 | $960,000 | |
| Cost of Goods Sold | 400,000 | 390,000 | |
| Gross Profit | $650,000 | $570,000 | |
| Selling Expenses | $270,000 | $275,000 | |
| Administrative Expenses | 195,000 | 165,000 | |
| Total operating expenses | $465,000 | $440,000 | |
| Income from Operations | $185,000 | $1 | 30,000 |
| Other income | 20,000 | ||
| $205,000 | $145,000 | ||
| Other expense | 96,000 | 48,000 | |
| Income before Tax | $109,000 | $97,000 | |
| Income Tax Expense | 41,000 | ||
| NET INCOME | $68,000 | $67,000 |
| ASSETS | ||||
| Current Assets | ||||
| Cash | $165,000 | $126,000 | ||
| Securities | 398,000 | 254,000 | ||
| A/R | 199,000 | |||
| Inventory | 84,000 | 52,000 | ||
| Prepaids | 25,000 | 18,000 | ||
| Total Current Assets | $871,000 | $615,000 | ||
| Long Term Investments | 300,000 | 200,000 | ||
| Plant Property and Equipment (net of depreciation) | 1,040,000 | 760,000 | ||
| Total Assets | $2,211,000 | $1,575,000 | ||
| LIABILITIES | ||||
| Accounts Payable | $290,000 | $250,000 | ||
| Long Term Liabilities | ||||
| Mortgage note payable , 8% due 2011 | ||||
| Bonds Payable, 12% due 2015 | 600,000 | |||
| Total Long-term liabilities | $900,000 | $400,000 | ||
| Total Liabilities | $1,190,000 | |||
| Stockholders’ Equity | ||||
| Preferred $6 stock, $100 par | $200,000 | |||
| Common Stock, $10 par | 350,000 | |||
| 421,000 | ||||
| Total Stockholder’s Equity | $1,021,000 | $925,000 | ||
| Total liabilities and stockholders’ equity |
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Achiever Papers is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Dissertation Writing Service Works
First, you will need to complete an order form. It's not difficult but, if anything is unclear, you may always chat with us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download