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