problem Set

   Finance conclusion of Adams Stores, Inc. for the year limit 2016 and 2017. Items 2016 2017 Sales $3,432,000 $5,834,400 Cash 9,000 7,282 Other Expenses 340,000 720,000 Retained Earnings 203,768 97,632 Long-term obligation 323,432 1,000,000 Cost of issue sold 2,864,000 4,980,000 Depreciation 18,900 116,960 Short-term investments 48,600 20,000 Fixed Assets 491,000 1,202,950 Interest Expenses 62,500 176,000 Shares uncollected (par estimate =$46.00) 100,000 100,000 Market Price of store 8.50 6 Accounts Receivable 351,200 632,160 Accounts payable 145,600 324,000 Inventory 715,200 1,287,360 Notes Payable  200,000 720,000 Accumulated Depreciation 146,200 263,160 Accruals 136,000 284,960 Tax Rate 40% 40% Instructions: Complete the aftercited activities using the financial notice overhead: Part 1: Financial Statements A. Prepare the proceeds proposition for 2016 and 2017. Include proposition of retained earnings for 2017. The sodality compensated $11,000 dividend in 2017. B. Prepare the et prevarication for 2016 and 2017 C. Prepare Common-Size financial propositions of proceeds proposition and et sheet. D. Prepare Proposition of Cash Flows.  Part 2: Financial Proposition Analysis A. Based on your financial propositions (from Part 1), apportion the aftercited ratios for the two years. Pretext all your regards in good-natured-natured fashion. Pretext your fashionulas. If you use abound, each regard insufficiency to pretext the abound fashionula Current ratio Quick ratio Inventory turnover (times) Average assembly continuance (days) Total asset turnover (times) Debt ratio Times concern earned Gross acquisition margin Net acquisition margin Return on aggregate assets Return on equity P/E ratio Return on equity using DuPont Analysis B. Comments on the ratios by comparing 2016 to 2017 ratios. C. Assume Adams Stores, Inc. is a dispose-of sodality homogeneous to WalMart, Myers, or Target. Compare 2017 ratios to the perseverance moderation. Please melody that Adams Stores, Inc. is not a developed sodality. To ascertain resembling perseverance ratios, you insufficiency to quest for perseverance ratios for dispose-of. See notice on Moodle for instructions on how to ascertain perseverance ratios. Based on the perseverance moderation, how is Adams Stores, Inc. doing financially?  Part 3: Break-even, Financial and Bounteous Leverages Johnson Products, Inc. Income Statement For the Year Ended December 31, 2018 Sales (40,000 bags at $50 each) .................................. $2,000,000 Less: Variable costs (40,000 bags at $25)................ 1,000,000 Fixed costs.............................................................. 600,000 Earnings antecedently concern and taxes .............................. 400,000 Interest expenditure ........................................................... 120,000 Earnings antecedently taxes ................................................. 280,000 Income tax expenditure (20%) .......................................... 56,000 Net proceeds .................................................................. $ 224,000 Based on the notice overhead, apportion (pretext all regards and responses in good-natured form): a. Break-even in units (in dollars and units). Explain what your quantity moderation. As a manager, how would you use the quantity in financial planning? b. What is the station of financial leverage? Explain what your calculate moderation. As a manager, how would you use the quantity in financial planning? c. What is the station of bounteous leverage? Explain what your calculate moderation. As a manager, how would you use the quantity in financial planning?