Please find the question below and complete the worksheets titled -'Ratio&CF', 'CmnsizeV', 'CmnsizeH', & 'AmortSch'

(find out the values/fill out the

'green' cells using cell reference and formula). Accordingly, please answer the following 5 (Five) questions in the spaces provided (max 30 words for
each).
This google sheet is autosaved. Once you are done, please turn in/submit by deadline. By turning in this assignment you attest that you have not
consulted anyone/taken help from anyone while completing it.

a. Has the liquidity position of YYY Inc. improved or worsened? Explain.

b. Has YYY's ability to manage its assets improved or worsened? Explain.

c. How has YYY’s profitability changed during the three years?

d. Perform a common size analysis. What has happened to the composition (that is, percentage in each category) of assets and liabilities?

e. Perform a percentage change analysis. What does this tell you about the change in profitability and asset utilization?
 YYY Inc's December 31 Balance Sheets Ratio Analysis 2018 2019
2019 (Industry
Assets 2017 2018 2019 Liquidity Ratios 2017 2018 2019 Average) Operating activities
Cash and cash equivalents $ 57,600 $ 7,282 $ 85,632 Current Ratio 2.3 1.2 2.3 2.7 Net Income -$160,176 $253,584
Short-term investments $ - $ - $ - Quick Ratio 0.8 0.4 0.8 1.0 Non cash adjustment
Accounts Receivable $ 351,200 $ 632,160 $ 878,000 Asset Management Ratios Depreciation & Amortization $116,960 $116,960
Inventories $ 715,200 $ 1,287,360 $ 1,716,480 Inventory Turnover 4.0 4.4 3.5 6.1 WC adjustment
Total current assets $ 1,124,000 $ 1,926,802 $ 2,680,112 Receivables Turnover 9.8 9.5 8.0 10.2 Change in Accounts Receivables $280,960 $245,840
Gross fixed asets $ 491,000 $ 1,202,950 $ 1,197,160 Payable Turnover 19.8 10.8 13.7 15.1 Change in Inventories $572,160 $429,120
Less: Accumulated depreciation $ 146,200 $ 263,160 $ 380,120 Inventory Days 90.6 83.2 104.5 59.8 Change in Accounts Payable $378,560 -$87,360

Receivable Days (Days Sales

Net plant and equipment $ 344,800 $ 939,790 $ 817,040 Outstanding) 37.4 38.2 45.5 35.8 Change in Accruals $500,808 -$228,808

Total assets $ 1,468,800 $ 2,866,592 $ 3,497,152 Payable Days 18.4 33.9 26.6 24.2 Net cash provided (used) by operating activities -$16,968 -$620,584
Liabilities and equity Operating Cycle 127.9 121.5 150.1 95.6 Investing activities
Accounts payable $ 145,600 $ 524,160 $ 436,800 Net Operating Cycle 109.5 87.6 123.5 71.4 Cash used to acquire Fixed Assets $711,950 -$5,790
Notes payable $ 200,000 $ 489,600 $ 300,000 Fixed Assets Turnover 10.0 6.4 8.6 9.5 Change in short‐term investments $0 $0
Accruals $ 136,000 $ 636,808 $ 408,000 Total Assets Turnover 2.3 2.1 2.0 2.1 Net cash provided (used) by investing activities -$711,950 $5,790
Total current liabilities $ 481,600 $ 1,650,568 $ 1,144,800 Debt Management Ratios Financing activities
Long-term bonds $ 323,432 $ 723,432 $ 400,000 Debt Ratio 0.36 0.42 0.20 0.32 Change in notes payable $289,600 -$189,600
Total liabilities $ 805,032 $ 2,374,000 $ 1,544,800 Debt-to-equity ratio 0.79 2.46 0.36 0.50 Change in bonds $400,000 -$323,432
Common stock $ 460,000 $ 460,000 $ 1,721,176 Marker Debt Ratio 0.38 0.84 0.19 0.19 Change in common stocks $0 $1,261,176
Retained Earnings $ 203,768 $ 32,592 $ 231,176 Liabilities-to-asset ratio 0.55 0.83 0.44 0.5 Payment of common and preferred dividends $11,000 $55,000
Total common equity $ 663,768 $ 492,592 $ 1,952,352 Times-interest-earned ratio 4.34 -0.96 7.04 6.2 Net cash provided (used) by financing activities $678,600 $693,144
Total liabilities and equity $ 1,468,800 $ 2,866,592 $ 3,497,152 EBITDA coverage ratio 2.97 0.15 5.91 8.1 Net cash provied (used) -$50,318 $78,350
Profitability Ratios Cash and securities at beginning of the year $57,600 $7,282
YYY Inc's December 31 Income Statements Profit Margin 2.56% -2.65% 3.60% 3.60% Cash and securities at end of the year $7,282 $85,632
2017 2018 2019 Operating Profit Margin 5.55% -2.17% 7.00% 8.20%
Net Sales $ 3,432,000 $ 6,034,000 $ 7,035,600 Gross Profit Margin 16.00% 6.45% 14.82% 20%
Expenses/COGS excluding depr. and am$ 2,864,000 $ 5,528,000 $ 5,875,992 Return on Assets 5.99% -5.59% 7.25% 9%
Depreciation and Amortization $ 18,900 $ 116,960 $ 116,960 Return on Equity 13.25% -32.52% 12.99% 17.90%
Other operating expenses $ 358,672 $ 519,988 $ 550,000 Market Value Ratios
Total operating expenses $ 3,241,572 $ 6,164,948 $ 6,542,952 Earnings per share $0.88 ($1.60) $1.01 $2.50
EBIT $ 190,428 $ (130,948) $ 492,648 Price-to-earnings ratio 9.7 -1.4 12.0 16.2
Interest Expense $ 43,828 $ 136,012 $ 70,008 Cash flow per share $1.07 ($0.43) $1.48 $1.50
EBT $ 146,600 $ (266,960) $ 422,640 Price-to-cash flow ratio 7.95 -5.2 8.2 7.6
Taxes $ 58,640 $ (106,784) $ 169,056 Book Value per share $6.64 $4.93 $7.81 $7.50
Net Income available to common stock $ 87,960 $ (160,176) $ 253,584 Market-to-book ratio 1.3 0.5 1.6 2.9

Other Data NOPAT $114,257 -$78,569 $295,589

Common dividend $ 22,000 $ 11,000 $ 55,000 Op current assets $1,124,000 $1,926,802 $2,680,112
Year-end Stock Price $ 8.50 $ 2.25 $ 12.17 Op current liabilities $281,600 $1,160,968 $844,800
# of common shares outstanding 100,000 100,000 250,000 Net operating working capital $842,400 $765,834 $1,835,312
EPS $ 0.88 $ (1.60) $ 1.01 Op long term assets $344,800 $939,790 $817,040
DPS $ 0.22 $ 0.11 $ 0.22 Total net operating capital $1,187,200 $1,705,624 $2,652,352
Tax rate 40% 40% 40% ROIC 9.62% -4.61% 11.14%
WACC 10% 10% 10%
Lease Payment $ 40,000 $ 40,000 $ 40,000 Market value of equity $850,000 $225,000 $3,042,500
Sinking Fund Payment $ - $ - $ - Book value of equity $663,768 $492,592 $1,952,352
Book Value per Share $ 6.638 $ 4.926 $ 7.809 MVA $186,232 -$267,592 $1,090,148
Market to Book Ratio 1.28 0.46 1.56
EVA -$4,463 -$249,131 $30,354
Net investment in operating
capital $518,424 $946,728
FCF= -$596,993 -$651,139
 Vertical Commonsize Analysis
YYY Inc's December 31 Balance Sheets YYY Inc's December 31 Balance Sheets Industry composite
Assets 2017 2018 2019 Assets 2017 2018 2019 2019
Cash and cash equivalents $ 57,600 $ 7,282 $ 85,632 Cash and cash equivalents 3.92% 0.25% 2.45% 1%
Short-term investments $ - $ - $ - Short-term investments 0.00% 0.00% 0.00% 3%
Accounts Receivable $ 351,200 $ 632,160 $ 878,000 Accounts Receivable 23.91% 22.05% 25.11% 20%
Inventories $ 715,200 $ 1,287,360 $ 1,716,480 Inventories 48.69% 44.91% 49.08% 45%
Total current assets $ 1,124,000 $ 1,926,802 $ 2,680,112 Total current assets 76.53% 67.22% 76.64% 75%
Gross fixed asets $ 491,000 $ 1,202,950 $ 1,197,160 Gross fixed asets 33.43% 41.96% 34.23% 30%
Less: Accumulated depreciation $ 146,200 $ 263,160 $ 380,120 Less: Accumulated depreciation 9.95% 9.18% 10.87% 9%
Net plant and equipment $ 344,800 $ 939,790 $ 817,040 Net plant and equipment 23.47% 32.78% 23.36% 20%
Total assets $ 1,468,800 $ 2,866,592 $ 3,497,152 Total assets 100.00% 100.00% 100.00%
Liabilities and equity Liabilities and equity
Accounts payable $ 145,600 $ 524,160 $ 436,800 Accounts payable 9.9% 18.3% 12.5% 10%
Notes payable $ 200,000 $ 489,600 $ 300,000 Notes payable 13.6% 17.1% 8.6% 10%
Accruals $ 136,000 $ 636,808 $ 408,000 Accruals 9.3% 22.2% 11.7% 8%
Total current liabilities $ 481,600 $ 1,650,568 $ 1,144,800 Total current liabilities 32.8% 57.6% 32.7% 30%
Long-term bonds $ 323,432 $ 723,432 $ 400,000 Long-term bonds 22.0% 25.2% 11.4% 20%
Total liabilities $ 805,032 $ 2,374,000 $ 1,544,800 Total liabilities 54.8% 82.8% 44.2% 40%
Common stock $ 460,000 $ 460,000 $ 1,721,176 Common stock 31.3% 16.0% 49.2% 40%
Retained Earnings $ 203,768 $ 32,592 $ 231,176 Retained Earnings 13.9% 1.1% 6.6% 10%
Total common equity $ 663,768 $ 492,592 $ 1,952,352 Total common equity 45.2% 17.2% 55.8% 68%
Total liabilities and equity $ 1,468,800 $ 2,866,592 $ 3,497,152 Total liabilities and equity 100.0% 100.0% 100.0%

YYY Inc's December 31 Income Statements YYY Inc's December 31 Income Statements Industry composite
2017 2018 2019 2017 2018 2019 2019
Net Sales $ 3,432,000 $ 6,034,000 $ 7,035,600 Net Sales 100.0% 100.0% 100.0%
Expenses/COGS excluding depr. and am$ 2,864,000 $ 5,528,000 $ 5,875,992 Expenses/COGS excluding depr. and amort 83.4% 91.6% 83.5% 80%
Depreciation and Amortization $ 18,900 $ 116,960 $ 116,960 Depreciation and Amortization 0.6% 1.9% 1.7% 2%
Other operating expenses $ 358,672 $ 519,988 $ 550,000 Other operating expenses 10.5% 8.6% 7.8% 9%
Total operating expenses $ 3,241,572 $ 6,164,948 $ 6,542,952 Total operating expenses 94.5% 102.2% 93.0% 91%
EBIT $ 190,428 $ (130,948) $ 492,648 EBIT 5.5% -2.2% 7.0% 8%
Interest Expense $ 43,828 $ 136,012 $ 70,008 Interest Expense 1.3% 2.3% 1.0% 1%
EBT $ 146,600 $ (266,960) $ 422,640 EBT 4.3% -4.4% 6.0% 5%
Taxes $ 58,640 $ (106,784) $ 169,056 Taxes 1.7% -1.8% 2.4% 2%
Net Income available to common stockh$ 87,960 $ (160,176) $ 253,584 Net Income available to common stockhold 2.6% -2.7% 3.6% 4%
 Horizontal Commonsize Analysis (Percentage Change Analysis)
YYY Inc's December 31 Balance Sheets YYY Inc's December 31 Balance Sheets
Assets 2017 2018 2019 Assets 2017 2018 2019
Cash and cash equivalents $ 57,600 $ 7,282 $ 85,632 Cash and cash equivalents 100.0% 12.6% 148.7%
Short-term investments $ - $ - $ - Short-term investments 100.0% #DIV/0! #DIV/0!
Accounts Receivable $ 351,200 $ 632,160 $ 878,000 Accounts Receivable 100.0% 180.0% 250.0%
Inventories $ 715,200 $ 1,287,360 $ 1,716,480 Inventories 100.0% 180.0% 240.0%
Total current assets $ 1,124,000 $ 1,926,802 $ 2,680,112 Total current assets 100.0% 171.4% 238.4%
Gross fixed asets $ 491,000 $ 1,202,950 $ 1,197,160 Gross fixed asets
Less: Accumulated 100.0% 245.0% 243.8%
Less: Accumulated depreciation $ 146,200 $ 263,160 $ 380,120 depreciation 100.0% 180.0% 260.0%
Net plant and equipment $ 344,800 $ 939,790 $ 817,040 Net plant and equipment 100.0% 272.6% 237.0%
Total assets $ 1,468,800 $ 2,866,592 $ 3,497,152 Total assets 100.0% 195.2% 238.1%
Liabilities and equity Liabilities and equity
Accounts payable $ 145,600 $ 524,160 $ 436,800 Accounts payable 100.0% 360.0% 300.0%
Notes payable $ 200,000 $ 489,600 $ 300,000 Notes payable 100.0% 244.8% 150.0%
Accruals $ 136,000 $ 636,808 $ 408,000 Accruals 100.0% 468.2% 300.0%
Total current liabilities $ 481,600 $ 1,650,568 $ 1,144,800 Total current liabilities 100.0% 342.7% 237.7%
Long-term bonds $ 323,432 $ 723,432 $ 400,000 Long-term bonds 100.0% 223.7% 123.7%
Total liabilities $ 805,032 $ 2,374,000 $ 1,544,800 Total liabilities 100.0% 294.9% 191.9%
Common stock $ 460,000 $ 460,000 $ 1,721,176 Common stock 100.0% 100.0% 374.2%
Retained Earnings $ 203,768 $ 32,592 $ 231,176 Retained Earnings 100.0% 16.0% 113.5%
Total common equity $ 663,768 $ 492,592 $ 1,952,352 Total common equity 100.0% 74.2% 294.1%
Total liabilities and equity $ 1,468,800 $ 2,866,592 $ 3,497,152 Total liabilities and equity 100.0% 195.2% 238.1%

YYY Inc's December 31 Income Statements YYY Inc's December 31 Income Statements
2017 2018 2019 2017 2018 2019
Net Sales $ 3,432,000 $ 6,034,000 $ 7,035,600 Net Sales 100.0% 175.8% 205.0%
Expenses/COGS excluding depr. and a $ 2,864,000 $ 5,528,000 $ 5,875,992 Expenses/COGS excluding depr. 100.0% 193.0% 205.2%
Depreciation and Amortization $ 18,900 $ 116,960 $ 116,960 Depreciation and Amortization 100.0% 618.8% 618.8%
Other operating expenses $ 358,672 $ 519,988 $ 550,000 Other operating expenses 100.0% 145.0% 153.3%
Total operating expenses $ 3,241,572 $ 6,164,948 $ 6,542,952 Total operating expenses 100.0% 190.2% 201.8%
EBIT $ 190,428 $ (130,948) $ 492,648 EBIT 100.0% -68.8% 258.7%
Interest Expense $ 43,828 $ 136,012 $ 70,008 Interest Expense 100.0% 310.3% 159.7%
EBT $ 146,600 $ (266,960) $ 422,640 EBT 100.0% -182.1% 288.3%
Taxes $ 58,640 $ (106,784) $ 169,056 Taxes 100.0% -182.1% 288.3%
Net Income available to common stock $ 87,960 $ (160,176) $ 253,584 Net Income available to common 100.0% -182.1% 288.3%
There are 2 questions below. You are required to attempt both. Please use cell reference and formula (similar to Ex
solve the problems so that the spreadsheet is dynamic one.

1. You borrow $100,000 today and will repay the loan in equal installments at the end of the next 5 years. How much is y
payment if the interest rate is 9.5%? Please prepare the schedule below.
Loan amount= $100,000 Year Beg. Balance Annual Pmt Interest Pmt
Time to repay= 5 years 1 $100,000 $26,044 $9,500
Interest rate= 9.50% 2 $83,456 $26,044 $7,928
3 $65,341 $26,044 $6,207
Annual payment= $26,044 4 $45,505 $26,044 $4,323
5 $23,784 $26,044 $2,259

2. If you borrow $100,000 today & repay it in equal installments at the end of months during the next 5 years, how much
payment if the interest rate is 9.5%? Please prepare the schedule below.
Loan amount= $100,000 Year Month Beg. Balance Monthly Pmt Interest Pmt
Time to repay= 5 years 1 $100,000 $2,100 $792
60 months 2 $98,691 $2,100 $781
Interest rate= 9.50% per year 3 $97,373 $2,100 $771
0.79% per month 4 $96,043 $2,100 $760
5 $94,703 $2,100 $750
Monthly payment= $2,100 6 $93,353 $2,100 $739
1
7 $91,992 $2,100 $728
8 $90,620 $2,100 $717
9 $89,237 $2,100 $706
10 $87,843 $2,100 $695
11 $86,439 $2,100 $684
12 $85,023 $2,100 $673
13 $83,596 $2,100 $662
14 $82,157 $2,100 $650
15 $80,708 $2,100 $639
16 $79,246 $2,100 $627
17 $77,773 $2,100 $616
18 $76,289 $2,100 $604
2
19 $74,793 $2,100 $592
20 $73,285 $2,100 $580
21 $71,765 $2,100 $568
22 $70,233 $2,100 $556
23 $68,688 $2,100 $544
24 $67,132 $2,100 $531
25 $65,563 $2,100 $519
26 $63,982 $2,100 $507
27 $62,389 $2,100 $494
28 $60,782 $2,100 $481

3
 29 $59,163 $2,100 $468
30 $57,531 $2,100 $455
3
31 $55,887 $2,100 $442
32 $54,229 $2,100 $429
33 $52,558 $2,100 $416
34 $50,874 $2,100 $403
35 $49,177 $2,100 $389
36 $47,466 $2,100 $376
37 $45,741 $2,100 $362
38 $44,003 $2,100 $348
39 $42,251 $2,100 $334
40 $40,486 $2,100 $321
41 $38,706 $2,100 $306
42 $36,912 $2,100 $292
4
43 $35,104 $2,100 $278
44 $33,282 $2,100 $263
45 $31,445 $2,100 $249
46 $29,594 $2,100 $234
47 $27,728 $2,100 $220
48 $25,847 $2,100 $205
49 $23,952 $2,100 $190
50 $22,041 $2,100 $174
51 $20,116 $2,100 $159
52 $18,175 $2,100 $144
53 $16,218 $2,100 $128
54 $14,247 $2,100 $113
5
55 $12,259 $2,100 $97
56 $10,256 $2,100 $81
57 $8,237 $2,100 $65
58 $6,202 $2,100 $49
59 $4,151 $2,100 $33
60 $2,084 $2,100 $16
nd formula (similar to Excel formula) to

t 5 years. How much is your annual

Principal Pmt End. Balance

$16,544 $83,456
$18,115 $65,341
$19,836 $45,505
$21,721 $23,784
$23,784 $0

e next 5 years, how much is your monthly

Principal Pmt End. Balance

$1,309 $98,691
$1,319 $97,373
$1,329 $96,043
$1,340 $94,703
$1,350 $93,353
$1,361 $91,992
$1,372 $90,620
$1,383 $89,237
$1,394 $87,843
$1,405 $86,439
$1,416 $85,023
$1,427 $83,596
$1,438 $82,157
$1,450 $80,708
$1,461 $79,246
$1,473 $77,773
$1,484 $76,289
$1,496 $74,793
$1,508 $73,285
$1,520 $71,765
$1,532 $70,233
$1,544 $68,688
$1,556 $67,132
$1,569 $65,563
$1,581 $63,982
$1,594 $62,389
$1,606 $60,782
$1,619 $59,163
$1,632 $57,531
$1,645 $55,887
$1,658 $54,229
$1,671 $52,558
$1,684 $50,874
$1,697 $49,177
$1,711 $47,466
$1,724 $45,741
$1,738 $44,003
$1,752 $42,251
$1,766 $40,486
$1,780 $38,706
$1,794 $36,912
$1,808 $35,104
$1,822 $33,282
$1,837 $31,445
$1,851 $29,594
$1,866 $27,728
$1,881 $25,847
$1,896 $23,952
$1,911 $22,041
$1,926 $20,116
$1,941 $18,175
$1,956 $16,218
$1,972 $14,247
$1,987 $12,259
$2,003 $10,256
$2,019 $8,237
$2,035 $6,202
$2,051 $4,151
$2,067 $2,084
$2,084 $0