2015 2014

Liquidity
Current ratio=current assets/current liabilities 1.844 1.63662
Quick ratio=current assets-inventory/curr.liabiliti0.750667 0.932394

we can assume that the firm has enough resources to meet its short-term obligations
If the quick ratio is much lower than the current ratio, this means that current assets heavily depend on in

Debt ratio 37% 40%

From a pure risk perspectivedebt ratios of 0.4 or lower are considered good.
In addition, in 2015, the number got deacreased which means the firm owns its assets more than creditors do.
Productivity
Gross profit margin=gross profits/sales 23%
Operating profit margin=operating profits/sales 13%

Income statement
To sum up: Technica, Inc. showed a net profit for 2015 and the ability to pay cash dividends to its stockholders
The financial condition of Technica, Inc. at December 31, 2014 and 2015 is shown as a summary of assets and liabilities.
Technica, Inc. has an excess of current assets over current liabilities, demonstrating liquidity
Statement of retained earnings
Technica, Inc. earned a net profit of $42,900 in 2015 and paid out $20,000 in cash dividends.
The reconciliation of the retained earnings account from $50,200 to $73,100 shows the net amount ($22,900) retained by th
heavily depend on inventories

tockholders
assets and liabilities.

($22,900) retained by the firm

 Statement Type of account
Accounts payables BS CL
Accounts recievables BS CA
Accruals BS CL
Accumulated depreciatioBS FA
Administrative expences IS E
Buildings BS FA
Cash BS CA
Common stock BS SE
Cost of goods sold IS E
Depreciation IS E
Equipment BS FA
General expense IS E
Interest expense IS E
Inventories BS CA
Land BS FA
Long-term debts BS LTD
Machinery BS FA
Marketable securities BS CA
Notes payable BS CL
Operating expenses IS E
Paid in capital BS SE
preferred stock div IS E
Preferred stock BS SE
Retaied earnings BS SE
sales revenue IS R
selling expenses IS E
Taxes IS E
Vehicle BS FA
Income statement
Sales revenue 360000
Less; operating expenses
salaries 180000
Employment taxes and benefit 34600
Supplies 10400
Travel&entertainment 17000
Lease Payment 32400
Depresiation expenses 15600
Total operating expense 290000

Operating profits 70000

Less: interest expense 15000
Net profit before tax 55000
Less: Taxes (30%) 16500
Net profit after tax 38500

In her first year of business, Cathy Chen covered all her operating expenses and earned a net profit of $38,500 on revenues
profit of $38,500 on revenues of $360,000
margin turnover ROA FL multiplROE
5.9 2.11 12.449 1.75 21.78575
5.4 2.05 11.07 1.67 18.4869

5.8 2.18 12.644 1.75 22.127

4.7 2.13 10.011 1.69 16.91859

4.9 2.34 11.466 1.85 21.2121

4.1 2.15 8.815 1.64 14.4566

b Profitability: johnsons and industrys profit margins are decreasing

Efficiancy:Both industry’s and Johnson’s asset turnover have increased
Levarage
Only Johnson shows an increase in leverage from 2014 to 2015, while the industry has had less stability.
Between 2013 and 2014, leverage for the industry increased, while it decreased between 2014 and 2015.
As a result of these changes, the ROE has fallen for both Johnson and the industry, but Johnson has experienced
C Jonson requires analysis in profitability, because margins got decreased
y has had less stability.
tween 2014 and 2015.
, but Johnson has experienced a much smaller decline in its ROE