Question

Atlantic Aquatic Equipment Inc.							Atlantic Aquatic Equipment
Comparative Balance Sheets							Vertical Analysis - Balance Sheets
	Current Year	Prior Year		Change			Current Year	Prior Year
Cash	78,000.00	86,400.00		(8,400.00)			14%	17%
Account Receivable	603,000.00	526,800.00		76,200.00	U		24%	24%
Inventory	1,254,000.00	1,072,800.00		181,200.00	U		51%	49%
Total Current Assets	1,935,000.00	1,686,000.00					78%	77%
Fixed Assets	790,500.00	736,500.00		54,000.00	U		32%	33%
Less: Accumulated Depreciation	249,300.00	219,300.00		30,000.00			10%	10%
Net Fixed Assets	541,200.00	517,200.00					22%	23%
TOTAL ASSETS	2,476,200.00	2,203,200.00
Accounts Payable	262,800.00	218,400.00		44,400.00	S		11%	10%
Notes Payable	337,500.00	300,000.00		37,500.00	S		14%	14%
Accruals	210,000.00	204,000.00		6,000.00	S		8%	9%
Total Current Liabilities	810,300.00	722,400.00					33%	33%
Long Term Debt	636,918.00	485,148.00		151,770.00	S		26%	22%
Total Liabilities	1,447,218.00	1,207,548.00					58%	55%
Common Stock	690,000.00	690,000.00		-			28%	31%
Retained Earnings	338,982.00	305,652.00		33,330.00	S		14%	14%
Total Equity	1,028,982.00	995,652.00					42%	45%
TOTAL LIABILITIES AND EQUITY	2,476,200.00	2,203,200.00
Atlantic Aquatic Equipment Inc.							Atlantic Aquatic Equipment
Comparative Income Statements							Vertical Analysis - Income Statements
	Current Year	Prior Year					Current Year	Prior Year
Sales	5,782,000.00	5,260,255.00
Cost of Goods Sold	4,875,000.00	4,296,000.00					answer	answer
Gross Profit	907,000.00	964,255.00					answer	answer
							answer	answer
Selling, General and Admin Exp.	645,450.00	610,000.00					answer	answer
Depreciation	30,000.00	28,350.00					answer	answer
Operating Profit (EBIT)	231,550.00	325,905.00					answer	answer
							answer	answer
Interest Expense	114,000.00	93,750.00					answer	answer
Earnings B4 Taxes	117,550.00	232,155.00					answer	answer
							answer	answer
Tax (@40%)	47,020.00	92,862.00					answer	answer
NET INCOME	70,530.00	139,293.00					answer	answer
Dividend Payment	37,200.00	-
Atlantic Aquatic Equipment Inc.
Cash Flow Statement
Net Income	answer	answer
Depreciation Expense	answer	answer
	answer	answer
Changes in NWC:	answer	answer
_________ in A/R	answer	answer
_________ in Inventory	answer	answer
_________ in A/P	answer	answer
_________ in N/P	answer	answer
_________ in Accruals	answer	answer
Net Cash Flow from Operations	answer	answer						x
Purchased Equipment	answer	answer
Net Cash Flow from Investing	answer	answer
_________ in LTD	answer	answer
Paid CS Dividend	answer	answer
Net Cash Flow from Financing	answer	answer
Total Net Cash Flow	answer	answer
Ratio Analysis					B/W	B/W
Liquidity	Formula	Industy Average	Current Year	Prior Year	than Industry	than Prior Year
Current Ratio	CA/CL	2.8	answer	answer	answer	answer
Quick Ratio	(CA-Inventory)/ CL	1.1	answer	answer	answer	answer
Asset Mgt Ratios (T/O)
Inventory T/O	Sales/Inventory	7.2	answer	answer	answer	answer
Fixed Asset T/O	Net Sales/ Net Fixed Assets	10.5	answer	answer	answer	answer
Total Asset T/O	Sales/Total Assets	2.6	answer	answer	answer	answer
Debt (Leverage)
Debt Ratio	Total Liab/ Total Assets	50%	58.4%	54.8%	M	M
Financial Leverage	Total Assets/Equity	0.02	2.41	2.21	M	M
Profitability Ratios
Gross Profit Margin	Gross Profit/Sales	25.9%	answer	answer	answer	answer
Operating Profit Margin	Operating Profit/ Sales	13.3%	answer	answer	answer	answer
Net Profit Margin	Net Profit/ Sales	3.60%	answer	answer	answer	answer
Return on Assets	Net Income/Total Assets	9.4%	answer	answer	answer	answer
Return on Equity	Net Income/Total Equity	18.8%	answer	answer	answer	answer
DuPont Analysis	Operating Efficiency	Asset Mgt	Financial Leverage		Return on Equity
	(Profit Margin)	(Total Asset T/O)	(Debt)	=
FORMULAS	Net Income	Sales	Total Assets
	Sales	Total Assets	Equity
Current Year	answer	answer	answer		#VALUE!
Prior Year	answer	answer	answer		#VALUE!
Industry Average	3.60	2.60	2.01		18.8136

Answer 1

The following is the worksheet filled with the solutions.