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? Has the company’s ability to manage its assets improved or worsened? How has the company’s profitability changed during the last year? 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
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?
- Has the company’s ability to manage its assets improved or worsened?
- How has the company’s profitability changed during the last year?
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Joshua & White Technologies: December 31 Balance Sheets |
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|
(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 |
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|
Total current assets |
$161,259 |
$127,240 |
||
|
Net fixed assets |
223,097 |
200,000 |
||
|
Total assets |
$384,356 |
$327,240 |
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|
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 |
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|
Common stock |
178,440 |
178,440 |
||
|
|
72,125 |
40,000 |
||
|
Total common equity |
$250,565 |
$218,440 |
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|
Total liabilities and equity |
$384,356 |
$327,240 |
||
|
Joshua & White Technologies December 31 Income Statements |
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|
(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 |
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