STUDENT NAME:

Nathan Corporation
Income Statement Horizontal Analysis
For the Years Ended 12/31/13 and 12/31/14

Current Previous Change Percent

Period Period
Operating Revenue
Sales 750,000.00 840,000.00
Sales Returns & Allow. -7,200.00 -18,300.00
Sales Discounts -3,000.00 -4,000.00
Total Operating Revenue 739,800.00 817,700.00
Cost of Merchandise Sold 550,000.00 525,000.00
Gross Profit 189,800.00 292,700.00

Operating Expenses
Sales Salaries Expense 74,000.00 78,000.00
Advertising Expense 38,000.00 39,000.00
Utilities Expense 8,000.00 7,400.00
Depreciation Expense 4,500.00 4,000.00
Other Expense 5,300.00 4,700.00
Total Operating Expenses 129,800.00 133,100.00
Net Income from Operations 60,000.00 159,600.00
Interest Expense 3,500.00 5,000.00
Net Income before Tax 56,500.00 154,600.00
Tax Expense 15,000.00 50,000.00
Net Income after Tax 41,500.00 104,600.00
Nathan Corporation
Income Statement Vertical Analysis
For the Years Ended 12/31/13 and 12/31/14

Current Current Previous Previous

Amount Percent Amount Percent
Operating Revenue
Sales 750,000.00 840,000.00
Sales Returns & Allow. -7,200.00 -18,300.00
Sales Discounts -3,000.00 -4,000.00
Total Operating Revenue 739,800.00 817,700.00
Cost of Merchandise Sold 550,000.00 525,000.00
Gross Profit 189,800.00 292,700.00

Operating Expenses
Sales Salaries Expense 74,000.00 78,000.00
Advertising Expense 38,000.00 39,000.00
Utilities Expense 8,000.00 7,400.00
Depreciation Expense 4,500.00 4,000.00
Other Expense 5,300.00 4,700.00
Total Operating Expenses 129,800.00 133,100.00
Net Income from Operations 60,000.00 159,600.00
Interest Expense 3,500.00 5,000.00
Net Income before Tax 56,500.00 154,600.00
Tax Expense 15,000.00 50,000.00
Net Income after Tax 41,500.00 104,600.00
Nathan Corporation
Balance Sheet Horizontal Analysis
For the Years Ended 12/31/13 and 12/31/14

Current Previous Change Percent

Period Period
Assets
Cash 35,000.00 39,000.00
Accounts Receivable 60,000.00 65,000.00
Merchandise Inventory 50,000.00 48,000.00
Prepaid Insurance 12,000.00 15,000.00
Total Current Assets 157,000.00 167,000.00
Equipment 150,000.00 140,000.00
Accumulated Depreciation -27,000.00 -22,500.00
Total Plant Assets 123,000.00 117,500.00
Total Assets 280,000.00 284,500.00

Liabilities
Accounts Payable 18,000.00 15,000.00
Salaries Payable 3,000.00 4,000.00
Notes Payable 16,000.00 26,000.00
Total Current Liabilities 37,000.00 45,000.00
Long-Term Debt 100,000.00 130,000.00
Total Liabilities 137,000.00 175,000.00

Stockholders' Equity
Capital Stock 1,000.00 1,000.00
Retained Earnings 108,500.00 17,900.00
Dividends -8,000.00 -14,000.00
Net Income 41,500.00 104,600.00
Total Stockholders' Equity 143,000.00 109,500.00
Total Liabilities & Equity 280,000.00 284,500.00
Nathan Corporation
Balance Sheet Vertical Analysis
For the Years Ended 12/31/13 and 12/31/14

Current Current Previous Previous

Amount Percent Amount Percent
Assets
Cash 35,000.00 39,000.00
Accounts Receivable 60,000.00 65,000.00
Merchandise Inventory 50,000.00 48,000.00
Prepaid Insurance 12,000.00 15,000.00
Total Current Assets 157,000.00 167,000.00
Equipment 150,000.00 140,000.00
Accumulated Depreciation -27,000.00 -22,500.00
Total Plant Assets 123,000.00 117,500.00
Total Assets 280,000.00 284,500.00

Liabilities
Accounts Payable 18,000.00 15,000.00
Salaries Payable 3,000.00 4,000.00
Notes Payable 16,000.00 26,000.00
Total Current Liabilities 37,000.00 45,000.00
Long-Term Debt 100,000.00 130,000.00
Total Liabilities 137,000.00 175,000.00

Stockholders' Equity
Capital Stock 1,000.00 1,000.00
Retained Earnings 108,500.00 17,900.00
Dividends -8,000.00 -14,000.00
Net Income 41,500.00 104,600.00
Total Stockholders' Equity 143,000.00 109,500.00
Total Liabilities & Equity 280,000.00 284,500.00
Nathan Corporation
Ratio Analysis
For Year Ended 12/31/14

Earnings Performance Analysis

Rate Earned on Average Total Assets

Rate Earned on Average Stockholders' Equity
Rate Earned on Net Sales
Earnings Per Share
Price-Earnings Ratio

Efficiency Analysis

Accounts Receivable Turnover Ratio

Average Days for Payment
Merchandise Inventory Turnover Ratio
Average Number of Days Sales in Merch. Inv.

Short-Term Financial Strength

Working Capital
Current Ratio
Acid-Test Ratio

Long-Term Financial Strength Analysis

Debt Ratio
Equity Ratio
Equity Per Share