Liabilities net income 145 accounts current

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LIABILITIES NET INCOME $145 Accounts Payable $56 $81 Accruals $15 $20 CURRENT LIABILITIES $71 $101 Dividends Long Term Debt $630 $1,260 Stock Sold Equity $549 $694 TOTAL CAPITAL $1,179 $1,954 TOTAL LIABILITIES AND EQUITY $1,250 $2,055 Protek Company SUMMARY OF CHANGES TO CURRENT ACCOUNTS 12/31/20X2 Account Source / (Use) Receivables $(176) Inventory $(61) Payables $25 Accruals $5 $(207) Protek Company STATEMENT OF CASH FLOWS 12/31/20X2 CASH FROM OPERATING ACTIVITIES Net Income $145 Depreciation $250 Net changes in current accounts $(207) $188 CASH FROM INVESTING ACTIVITIES Purchase of fixed assets $(808) CASH FROM FINANCING ACTIVITIES Increase / (Decrease) in Long Term Debt $630 Sale of Stock $- Dividend Paid $- Cash from financing Activities $630 NET CASH FLOW $10 RECONCILIATION Beginning Cash Balance $30 This is your Check Figure (it matches the beginning cash balance for 20X2) Net Cash Flow $10 Ending Cash Balance $40
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Calculate the indicated ratios for 20X2 and 20X3for all three years See the formulas in column B to calculate the 20X2 and 20X3 ratios Industry average 20X1 20X2 20X3 Current ratio 4.5 4.2 5.4 5.8 Quick Ratio 3.2 2.9 3.9 4.0 ACP 42 40 60 65.1 Inventory turnover 7.5 7.0 6 5.0 Fixed asset turnover 1.6 1.7 1.4 2.1 Total asset turnover 1.2 1.3 1.0 1.3 Debt ratio 53% 56% 66% 70% Debt: equity 1.0 1.1 1.82 2.08 TIE 4.5 5.5 3.32 1.82 ROS 9.0% 11.9% 6.89% 2.36% ROA 10.8% 15.0% 7.1% 3.0% ROE 22.9% 34.1% 20.9% 10.0% Equity multiplier 2.1 2.3 2.96 3.29 Identify any strong trends and compare the ratios to the industry average. What can you infer from this information? The Average Collection Period starts at around 40 days and increases to 65 days by 20X3. This  shows that many customers are purchasing on credit and not paying what they owe for more than  2 months. This ratio is a bad sign. It is also showing that the inventory turnover has decreased…  and they are not using their materials as efficiently as they should. The debt ratios are also  increasing and which shows they are borrowing more money than they are retaining profit from  with such high levels of borrowing it is also showing up on other ratios on the worksheet. This  can be very bad for companies that are not producing more than they are borrowing.
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1. Construct the Du Pont Equation for both the industry and for Protek for 20X2 and 20X3 2. Construct the extended DuPont Equarion for both the Industry and for Protek for 20X2 and 20X3 See the formulas for 20X1 calculate the 20X2 and 20X3 ratios Du Pont Equation Extended Du Pont Equation Industry ROA = ROS x
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