ABC COMPANY

BALANCE SHEET
AS OF DECEMBER 31, 2018

ASSETS 2018 2017 2016

Current assets
Cash $ 501,992 $ 434,215 $ 375,141
Accounts Receivable 335,272 302,514 241,764
Inventory 515,174 505,321 310,885
Prepaid Expenses 251,874 231,100 136,388
Total current assets $ 1,604,312 $ 1,473,150 $ 1,064,178
Property, plant and equipment 765,215 735,531 705,132
Accumulated depreciation (218,284) (196,842) (175,400)
TOTAL ASSETS $ 2,151,243 $ 2,011,839 $ 1,593,910

LIABILITIES
Current liabilities
Accounts payable $ 248,494 $ 366,864 $ 322,156
Accrued liabilities 122,192 216,533 215,474
Income taxes payable 10,645 25,698 22,349
Current portion of long-term debt 42,200 42,200 42,200
Total current liabilities $ 423,531 $ 651,295 $ 602,179
Long-term liabilities
Long-term debt 425,311 400,311 375,100
TOTAL LIABILITIES $ 848,842 $ 1,051,606 $ 977,279

STOCKHOLDERS' EQUITY
Common Stock $ 370,124 $ 356,758 $ 320,841
Additional paid-in-capital 29,546 24,881 21,910
Retained earnings 902,731 578,594 273,880
Total stockholders' equity $ 1,302,401 $ 960,233 $ 616,631
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,151,243 $ 2,011,839 $ 1,593,910
 ABC COMPANY
INCOME STATEMENT
FOR THE PERIOD ENDED DECEMBER 31, 2018

2018 2017 2016

Sales $ 1,572,134 $ 1,413,581 $ 1,158,417
Cost of goods sold 601,215 556,721 500,702
Gross profit $ 970,919 $ 856,860 $ 657,715

EXPENSES
Advertising $ 55,153 $ 50,531 $ 42,150
Depreciation 21,442 21,442 21,442
Bad debts 20,151 18,934 17,943
Legal 17,261 10,207 9,701
Miscellaneous 91,014 31,214 29,104
Rent 148,321 142,078 141,143
Repairs and maintenance 14,315 13,642 11,932
Salaries and wages 47,121 45,312 39,142
Utilities 15,912 15,643 14,217
Total expenses $ 430,690 $ 349,003 $ 326,774
Net income before income tax $ 540,229 $ 507,857 $ 330,941
Income tax expense 216,092 203,143 132,376
NET INCOME $ 324,137 $ 304,714 $ 198,565

Number of shares of stock outstanding 35,913 26,786 23,712

 ABC COMPANY
RATIO ANALYSIS
31-Dec-18
LIQUIDITY RATIOS: 12/31/2018 12/31/2017 CHANGE % CHANGE
Current ratio
Current assets/Current liabilities $3.79 $2.26 $1.53 67.47%

Quick Ratio
(Current assets - Inventory) / Current liabilities $2.57 $1.49 $1.09 73.05%

Accounts receivable turnover

Sales/Average accounts receivable $1.23 $1.30 ($0.07) -5.09%

Days' sales in accounts receivable

365/Accounts receivable turnover $296.15 $281.08

Inventory turnover
Cost of goods sold/Average inventory $0.29 $0.34 ($0.05) -13.63%

PROFITABILITY/ PERFORMANCE RATIOS:

Profit margin
Net income/Net sales $ 20.62 $21.56 ($0.94) -4.35%

Gross profit margin (%)

Gross profit/Sales $61.76 $60.62 $1.14 1.88%

Earnings per share

Net income/Number of shares of stock 2.58 3.02 ($0.43) -14.33%

Total asset turnover

Sales/Total assets $0.73 $0.70 $0.03 4.01%

Working capital turnover

Sales/(Current assets - Current liabilities) $1.33 $1.72 ($0.39) -22.59%

EQUITY POSITION RATIOS:

Stockholders' equity ratio
Total stockholders' equity/ Total assets 0.61 0.48 $0.13 26.84%

Current debt to equity

Current liabilities/ Total stockholders' equity $0.33 $0.68 ($0.35) -52.06%

Debt to equity
Total liabilities/ Total stockholders equity $0.65 $1.10 ($0.44) -40.49%

LIABILITY AND ASSET RATIOS CHAPTER 13:

Acid-test ratio
Quick assets/ Current liabilities $2.57 $1.49 $1.09 73.05%

Accounts payable/ Cost of goods sold $0.41 $0.66 ($0.25) -37.28%

Accounts payable/ Total liabilities $0.59 $0.56 $0.02 4.16%

Accounts payable/ Inventory $0.48 $0.73 ($0.24) -33.56%

Long-term debt/ Stockholders' equity $0.33 $0.42 ($0.09) -21.67%

Total liabilities/ Total assets $0.39 $0.52 ($0.13) -24.51%

 ABC COMPANY
INCOME STATEMENT
FOR THE PERIOD ENDED DECEMBER 31, 2014

2018 2017 CHANGE % CHANGE

Sales $ 1,572,134 $ 1,413,581 $ 158,553 11%
Cost of goods sold 601,215 556,721 $ 44,494 8%
Gross profit $ 970,919 $ 856,860 $ 114,059 13%

EXPENSES
Advertising $ 55,153 $ 50,531 $ 4,622 9%
Depreciation 21,442 21,442 $ - 0%
Bad debts 20,151 18,934 $ 1,217 6%
Legal 17,261 10,207 $ 7,054 69%
Miscellaneous 91,014 31,214 $ 59,800 192%
Rent 148,321 142,078 $ 6,243 4%
Repairs and maintenance 14,315 13,642 $ 673 5%
Salaries and wages 47,121 45,312 $ 1,809 4%
Utilities 15,912 15,643 $ 269 2%
Total expenses $ 430,690 $ 349,003 $ 81,687 23%
Net income before income tax $ 540,229 $ 507,857 $ 32,372 6%
Income tax expense 216,092 203,143 $ 12,949 6%
NET INCOME $ 324,137 $ 304,714 $ 19,423 6%
 ABC COMPANY
INCOME STATEMENT
FOR THE PERIOD ENDED DECEMBER 31, 2014

2018 % of Sales 2017 % of Sales 2016

Sales $ 1,572,134 100% $ 1,413,581 100% $ 1,158,417
Cost of goods sold 601,215 38% 556,721 39% 500,702
Gross profit $ 970,919 62% $ 856,860 61% $ 657,715

EXPENSES
Advertising $ 55,153 4% $ 50,531 4% $ 42,150
Depreciation 21,442 1% 21,442 2% 21,442
Bad debts 20,151 1% 18,934 1% 17,943
Legal 17,261 1% 10,207 1% 9,701
Miscellaneous 91,014 6% 31,214 2% 29,104
Rent 148,321 9% 142,078 10% 141,143
Repairs and maintenance 14,315 1% 13,642 1% 11,932
Salaries and wages 47,121 3% 45,312 3% 39,142
Utilities 15,912 1% 15,643 1% 14,217
Total expenses $ 430,690 27% $ 349,003 25% $ 326,774
Net income before income tax $ 540,229 34% $ 507,857 36% $ 330,941
Income tax expense 216,092 14% 203,143 14% 132,376
NET INCOME $ 324,137 21% $ 304,714 22% $ 198,565

Number of shares of stock outstanding 35,913 26,786 23,712

% of Sales
100%
43%
57%

4%
2%
2%
1%
3%
12%
1%
3%
1%
28%
29%
11%
17%
 ABC COMPANY
BALANCE SHEET
AS OF DECEMBER 31, 2018

ASSETS 2018 2017 CHANGE % CHANGE

Current assets
Cash $ 501,992 $ 434,215 $ 67,777 16%
Accounts Receivable 335,272 302,514 $ 32,758 11%
Inventory 515,174 505,321 $ 9,853 2%
Prepaid Expenses 251,874 231,100 $ 20,774 9%
Total current assets $ 1,604,312 $ 1,473,150 $ 131,162 9%
Property, plant and equipment 765,215 735,531 $ 29,684 4%
Accumulated depreciation (218,284) (196,842) $ (21,442) 11%
TOTAL ASSETS $ 2,151,243 $ 2,011,839 $ 139,404 7%

LIABILITIES
Current liabilities
Accounts payable $ 248,494 $ 366,864 $ (118,370) -32%
Accrued liabilities 122,192 216,533 $ (94,341) -44%
Income taxes payable 10,645 25,698 $ (15,053) -59%
Current portion of long-term debt 42,200 42,200 $ - 0%
Total current liabilities $ 423,531 $ 651,295 $ (227,764) -35%
Long-term liabilities
Long-term debt 425,311 400,311 $ 25,000 6%
TOTAL LIABILITIES $ 848,842 $ 1,051,606 $ (202,764) -19%

STOCKHOLDERS' EQUITY
Common Stock $ 370,124 $ 356,758 $ 13,366 4%
Additional paid-in-capital 29,546 24,881 $ 4,665 19%
Retained earnings 902,731 578,594 $ 324,137 56%
Total stockholders' equity $ 1,302,401 $ 960,233 $ 342,168 36%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,151,243 $ 2,011,839 $ 139,404 7%
 ABC COMPANY
BALANCE SHEET
AS OF DECEMBER 31, 2018

ASSETS 2018 % TOTAL ASSETS 2017 % TOTAL ASSETS 2016 % TOTAL ASSETS
Current assets
Cash $ 501,992 23% $ 434,215 22% $ 375,141 24%
Accounts Receivable 335,272 16% 302,514 15% 241,764 15%
Inventory 515,174 24% 505,321 25% 310,885 20%
Prepaid Expenses 251,874 12% 231,100 11% 136,388 9%
Total current assets $ 1,604,312 75% $ 1,473,150 73% $ 1,064,178 67%
Property, plant and equipment 765,215 36% 735,531 37% 705,132 44%
Accumulated depreciation (218,284) -10% (196,842) -10% (175,400) -11%
TOTAL ASSETS $ 2,151,243 100% $ 2,011,839 100% $ 1,593,910 100%

LIABILITIES
Current liabilities
Accounts payable $ 248,494 29% $ 366,864 35% $ 322,156 33%
Accrued liabilities 122,192 14% 216,533 21% 215,474 22%
Income taxes payable 10,645 1% 25,698 2% 22,349 4%
Current portion of long-term debt 42,200 5% 42,200 4% 42,200 4%
Total current liabilities $ 423,531 50% $ 651,295 62% $ 602,179 62%
Long-term liabilities
Long-term debt 425,311 50% 400,311 38% 375,100 38%
TOTAL LIABILITIES $ 848,842 100% $ 1,051,606 100% $ 977,279 100%

STOCKHOLDERS' EQUITY
Common Stock $ 370,124 17% $ 356,758 18% $ 320,841 20%
Additional paid-in-capital 29,546 1% 24,881 1% 21,910 1%
Retained earnings 902,731 42% 578,594 60% 273,880 17%
Total stockholders' equity $ 1,302,401 61% $ 960,233 48% $ 616,631 39%
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,151,243 100% $ 2,011,839 100% $ 1,593,910 100%