Based on your financial statements (from Part 1), calculate the following ratios for the two years. Show all your calculations in good form. Show your formulas. If you use excel, each calculation need to show the excel formula

 Part 2: Financial Statement Analysis 

A. Based on your financial statements (from Part 1), calculate the following ratios for  the two years. Show all your calculations in good form. Show your formulas. If  you use excel, each calculation need to show the excel formula 

Current ratio 

Quick ratio 

Inventory turnover (times) 

Average collection period (days) 

Total asset turnover (times) 

Debt ratio 

Times interest earned 

Gross profit margin 

Net profit margin 

Return on total assets 

Return on equity 

P/E ratio 

Return on equity using DuPont Analysis 

I have attached Part 1 excel and original data document

My duty is to complete Part 2 (A) in the data document

Part 1A & 1B

Adams Stores, Inc.

$

$ $

n)

Expenses

:

720,000

Adams Stores, Inc.

(95,136)

323,432 1,000,000

460,000

Retained Earnings 203,768 97,632

1,468,800 2,886,592

																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																																											Adams Stores, Inc.
Income Statement			December 31, 2016			December 31, 2017
For the year ended 2016 and 2017				$
2,016	2,017
	ASSETS
Current Assets:
	Sales	3,432,000	5,834,400		Cash	9,000	7,282
Cost of Goods Sold	2,864,000	4,980,000	Short-term Investments	48,600	20,000
Gross Profit	568,000	854,400	Accounts Receivable	351,200	632,160
Inventory	715,200	1,287,360
Operating Expenses		Total Current Assets		1,124,000		1,946,802
	Depreciation	18,900	116,960
		Other Expenses	340,000		720,000	Non-current Assets:
Total Operating Expenses	358,900	836,960	Fixed Assets	491,000	1,202,950
(Less	Accumulated Depreciatio	(146,200)	(263,160)
Operating Income	209,100	17,440	Total Non-current Assets	344,800	939,790
	Interest	62,500	176,000		Total Assets			1,468,800			2,886,592
Net Income before Tax	146,600	(158,560)
Income Tax Expenses	58,640	(63,424)	LIABILITIES AND SHAREHOLDERS’ EQUITY:
Net Income after Tax	87,960		(95,136)	Current	Liabilities
Accounts Payable	145,600	324,000
Notes Payable	200,000
Accurals	136,000	284,960
Statement of		Retained Earnings		Total Current Liabilities		481,600		1,328,960
For the year ended 2017
Beginning Retained Earnings		203,768	Long-term Liabilities:
Add: Net Income Earned in 2017		Long-term Debt			323,432			1,000,000
Less: Dividends Paid in 2017	11,000	Total Long-term Liabilities
Ending Retained Earnings		97,632		Total Liabilities		805,032		2,328,960
Shareholders’ Equity
Common Stock		460,000
Total Shareholders’ Equity	663,768	557,632
Total Liabilities and Shareholders’ Equity

Part 1C

December 31, 2016

December 31, 2017

ASSETS

Total Current Assets 1,124,000

1,946,802

Other Expenses

Total Assets 1,468,800

2,886,592 100%

Liabilities
Total Current Liabilities 481,600

1,328,960

Long-term Debt 323,432

1,000,000

Total Liabilities 805,032

2,328,960

Balance Sheet
%	%
76.50%	67%
$340,000	23.50%	$720,000	33%
	100%
33.00%	46%
22.00%	35%
55.00%	81%

Part 1D

December 31, 2016 December 31, 2017
Sales

Cash

Retained Earnings

Accumulated Depreciatio

Depreciation

Interest

Other Expenses

$ (491,000.00) $ (1,202,950.00)

$ (720,000.00)

Statement of Cash Flow
Operations
$ 3,432,000.00	$ 5,834,400.00
$ 9,000.00	$ 7,282.00
$ 203,768.00	$ 97,632.00
cost of good sold	$ (2,864,000.00)	$ (4,980,000.00)
Inventory	$ (715,200.00)	$ (1,287,360.00)
$ (146,200.00)	$ (263,160.00)
$ (18,900.00)	$ (116,960.00)
$ (62,500.00)	$ (176,000.00)
$ (340,000.00)		$ (720,000.00)
Income taxes	$ (58,640.00)	$ (63,424.00)
Net Cash Flow from Operations	$ (560,672.00)	$ (1,667,590.00)
Investing Activities
fixed assets		$ (491,000.00)		$ (1,202,950.00)
Net Cash Flow from Investing Activities
Financing Activities
accounts Recevable	$ 351,200.00	$ 632,160.00
Long-Term Debt	$ 323,432.00	$ 1,000,000.00
accounts Payable	$ (145,600.00)	$ (324,000.00)
Short Term Investments	$ (48,600.00)	$ (20,000.00)
Notes Payble	$ (200,000.00)
Net Cash Flow from Financing Activities	$ 280,432.00	$ 568,160.00
Net Increase in Cash	$ (771,240.00)	$ (2,302,380.00)