Has the company’s liquidity position improved or worsened

Question # 00844990 Posted By: wildcraft Updated on: 08/22/2023 07:24 PM Due on: 08/23/2023
Subject Business Topic General Business Tutorials:
Question
Dot Image

Case study 2 fm

Please give a detailed analysis of the financial statements given below for Joshua & White Technologies. Your analysis should include answers to the questions as follows (not limited to these questions):

Has the company’s liquidity position improved or worsened? How’s it compared with the industry average?

• Has the company’s ability to manage its assets improved or worsened? How’s it compared with the industry average?

• How has the company’s profitability changed during the last year? How’s it compared with the industry average?

Note: you may need to research on the industry average on financial ratios for Information Technology companies.

Joshua & White Technologies: December 31 Balance Sheets

(Thousands of Dollars)                                  

                                                               

Assets                                   2019       2018

Cash and cash equivalents           $21,000 $20,000                

Short-term investments                               3,759     3,240    

Accounts Receivable                      52,500   48,000  

Inventories                                         84,000   56,000

Total current assets                        $161,259              $127,240             

Net fixed assets                               223,097 200,000

Total assets                                        $384,356              $327,240

                                                               

Liabilities and equity                                                      

Accounts payable                            $33,600 $32,000

Accruals                                               12,600   12,000

Notes payable                   19,929   6,480    

Total current liabilities                    $66,129 $50,480

Long-term debt                                67,662   58,320  

Total liabilities                    $133,791              $108,800             

Common stock                  178,440 178,440

Retained Earnings                            72,125   40,000  

Total common equity                     $250,565              $218,440             

Total liabilities and equity                             $384,356              $327,240             

                                                               

Joshua & White Technologies December 31 Income Statements                                                               

(Thousands of Dollars)                                                  

                                                2019       2018

Sales                                      $420,000              $400,000

COGS except excluding depr. and amort.              300,000 298,000                

Depreciation and Amortization  19,660   18,000                  

Other operating expenses           27,600   22,000                  

EBIT                                       $72,740 $62,000

Interest Expense                             5,740     4,460    

EBT                                         $67,000 $57,540

Taxes (25%)                        16,750   14,385  

Net Income                        $50,250 $43,155

                                                               

Common dividends                         $18,125 $17,262

Addition to retained earnings     $32,125 $25,893                

                                                               

Other Data                                          2019       2018

Year-end Stock Price                      $90.00   $96.00  

# of shares (Thousands)                               4,052     4,000    

Lease payment (Thousands of Dollars)   $20,000 $20,000                

Sinking fund payment (Thousands of Dollars)     $5,000   $5,000                  

 

Dot Image
Tutorials for this Question
  1. Tutorial # 00840457 Posted By: wildcraft Posted on: 08/22/2023 07:25 PM
    Puchased By: 2
    Tutorial Preview
    The solution of Has the company’s liquidity position improved or worsened...
    Attachments
    Has_the_company’s_liquidity_position_improved_or_worsened.ZIP (18.96 KB)

Great! We have found the solution of this question!

Whatsapp Lisa