The accounting equation is Assets = Liabilities + Stockholders' Equity

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The accounting equation is Assets = Liabilities + Stockholders' Equity. Replacing the words in the accounting equation with dollar amounts, give the company's accounting equation at the end of the current and prior years.

Assets = Liabilities + Equity

Assets = Liabilities + Equity

Year 1 (2020) 42,779 30,946 11,833

Year 2 (2019) 41,290 29,993 11,297

 

THE INCOME STATEMENT

Locate the company's income statement.

What is the period covered by the income statement?_______12 moths____________

Calculate the company's net Profit/(Loss) for the Years 1 and 2

Year 1 (2020) Year 2 (2019)

Net Revenue $ 78,112 $ 75,356

Cost of Goods Sold $ 54,864 $ 53,299

Gross Profit $ 4,658 $ 4,110

Operating Expenses $ 16,233 $ 15,723

Net Profit $ 3,281 $ 2,937

 

VII. Horizontal Analysis: Please select two (2) Income Statement and two (2) Balance Sheet accounts from the most recent and prior year financial. In the accompanied Excel spreadsheet please calculate the $ and % changes, then in your own word explain the changes. Your answer should include a comparison of the current and prior years analysis.

 

VIII. Ratio Analysis. In the accompanied Excel spreadsheet please calculate and interpret the selected ratio analysis. Your answer should include a comparison of the current and prior years analysis.

Ratio Temple: Excel spreadsheet

2019

1.  Profit Margin                 

     Formula              

     Profit Margin = Net Income/Net Revenues ___________

                    

     Net Income ___________

                    

     Net Revenue ___________

Explanation:

  

                 

2. Asset Turnover        

  Formula     

  Asset turnover = Net Revenues/Average total assets ________

__________

  Net Revenue _________  

        

  Average Total Assets __________  

        

  Explanation:

                 

                    

                    

3.  Return on Assets        

     Formula     

     Return on Assets = Net Income/Average Total assets __________

           

     Net Income _________

           

     Average Total Assets __________

           

     Explanation:  

4.  Inventory Turnover              

     Formula           

     Inventory Turnover = Cost Of Goods Sold/Average Inventory        Times_____________

                 

     COGS _______________  Days ______________

                 

     Average Inventory _____________

                 

     Explanation:  

Please I need help with Part Vll and Vlll. The the two balance sheet and income statement is already given (2019-2020) and I need help with the Ratio Temple: Excel spreadsheet