Question

Joshua & White Technologies: December 31 Balance Sheets
(Thousands of Dollars)
Assets			2016	2015
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			218,400	200,000
Total assets			$379,659	$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			183,793	178,440
Retained Earnings			62,075	40,000
Total common equity			$245,868	$218,440
Total liabilities and equity			$379,659	$327,240
Joshua & White Technologies December 31 Income Statements
(Thousands of Dollars)
			2016	2015
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 (40%)			26,800	23,016
Net Income			$40,200	$34,524
Common dividends			$18,125	$17,262
Addition to retained earnings			$22,075	$17,262
Other Data			2016	2015
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

f.  Perform a percent change analysis.  What does this tell you about the change in profitability
and asset utilization?
Percent Change Balance Sheets				Base
Assets			2016	2015
Cash and cash equivalents
Short-term investments
Accounts Receivable
Inventories
Total current assets
Net fixed assets
Total assets
				Base
Liabilities and equity			2016	2015
Accounts payable
Accruals
Notes payable
Total current liabilities
Long-term debt
Total liabilities
Common stock
Retained Earnings
Total common equity
Total liabilities and equity
				Base
Percent Change Income Statements			2016	2015
Sales
COGS except excluding depr. and amort.
Depreciation and Amortization
Other operating expenses
EBIT
Interest Expense
EBT
Taxes (40%)
Net Income

Answer 1

Joshua & White Technologies: December 31 Balance Sheets
(Thousands of Dollars)
Assets			2016	2015	% Change
Cash and cash equivalents			$21,000	$20,000	5.00%
Short-term investments			3,759	3,240	16.02%
Accounts Receivable			52,500	48,000	9.38%
Inventories			84,000	56,000	50.00%
Total current assets			$161,259	$127,240	26.74%
Net fixed assets			218,400	200,000	9.20%
Total assets			$379,659	$327,240	16.02%
Liabilities and equity
Accounts payable			$33,600	$32,000	5.00%
Accruals			12,600	12,000	5.00%
Notes payable			19,929	6,480	207.55%
Total current liabilities			$66,129	$50,480	31.00%
Long-term debt			67,662	58,320	16.02%
Total liabilities			$133,791	$108,800	22.97%
Common stock			183,793	178,440	3.00%
Retained Earnings			62,075	40,000	55.19%
Total common equity			$245,868	$218,440	12.56%
Total liabilities and equity			$379,659	$327,240	16.02%
Joshua & White Technologies December 31 Income Statements
(Thousands of Dollars)
			2016	2015	0.05%
Sales			$420,000	$400,000	5.00%
COGS except excluding depr. and amort.			300,000	298,000	0.67%
Depreciation and Amortization			19,660	18,000	9.22%
Other operating expenses			27,600	22,000	25.45%
EBIT			$72,740	$62,000	17.32%
Interest Expense			5,740	4,460	28.70%
EBT			$67,000	$57,540	16.44%
Taxes (40%)			26,800	23,016	16.44%
Net Income			$40,200	$34,524	16.44%