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a) Using the information contained in the financial statements of 2021, prepare Alicia and Hymin i) Closing entries and (ii) Post-closing trial balance. b) Perform various ratio analysis to: i) Evaluate the company's ability to pay current liabilities ii) Evaluate the company's ability to sell merchandise inventory iii) Evaluate the company's ability to collect receivables iv) Evaluate the company's ability to pay long-term debt v) Evaluate the company's profitability vi) Evaluate the performance of the stockholders' investments. HINT: As you know, you can use any ratio to search for information that is relevant to a particular decision, and no single ratio tells the whole picture of any company's performance. Different ratios explain different aspects of a company. You are to use as many relevant ratios as possible to evaluate each of the listed items above and provide interpretation or explanation of your analysis depending on whatever the industry average is associated to each ratio. No industry average has been provided but you can imagine what your interpretation would have been if the industry average had been lower, equal, or higher than each of the ratio's you calculated. c) Explain the difference between horizontal and vertical analysis. THE FINANCIAL STATEMENTS ARE ON THE NEXT PAGE BALANCE SHEET December 31, 2021 and 2020 ALICIA AND HYMIN COMPANY INCOME STATEMENT Years Ended December 31, 2021 and 2020 \begin{tabular}{|l|c|c|l|l} \hline & 2021 & 2020 & & \\ \hline Net Sales Revenue Cost of Goods Sold & $858,000 & $803,000 & & \\ \hline Gross Profit & 513,000 & 509,000 & & \\ \hline Operating Expenses: & 345,000 & 294,000 & & \\ Selling Expenses & & & & \\ Administrative Expenses & 126,000 & 114,000 & \\ \hline Total Operating expenses & 118,000 & 123,000 & & \\ \hline Operating Income & 244,000 & 237,000 & & \\ \hline Other income and (Expenses): Interest Revenue & 101,000 & 57,000 & & \\ Interest Expense & & 4,000 & 0 & \\ \hline Total Other Income and (Expenses) & (24,000) & (14,000) & \\ \hline Income Before Income Taxes & (20,000) & (14,000) & & \\ Income Tax Expense & 81,000 & 43,000 & & \\ Net Income & 33,000 & 17,000 & & \\ \hline \end{tabular} a) Using the information contained in the financial statements of 2021, prepare Alicia and Hymin i) Closing entries and (ii) Post-closing trial balance. b) Perform various ratio analysis to: i) Evaluate the company's ability to pay current liabilities ii) Evaluate the company's ability to sell merchandise inventory iii) Evaluate the company's ability to collect receivables iv) Evaluate the company's ability to pay long-term debt v) Evaluate the company's profitability vi) Evaluate the performance of the stockholders' investments. HINT: As you know, you can use any ratio to search for information that is relevant to a particular decision, and no single ratio tells the whole picture of any company's performance. Different ratios explain different aspects of a company. You are to use as many relevant ratios as possible to evaluate each of the listed items above and provide interpretation or explanation of your analysis depending on whatever the industry average is associated to each ratio. No industry average has been provided but you can imagine what your interpretation would have been if the industry average had been lower, equal, or higher than each of the ratio's you calculated. c) Explain the difference between horizontal and vertical analysis. THE FINANCIAL STATEMENTS ARE ON THE NEXT PAGE BALANCE SHEET December 31, 2021 and 2020 ALICIA AND HYMIN COMPANY INCOME STATEMENT Years Ended December 31, 2021 and 2020 \begin{tabular}{|l|c|c|l|l} \hline & 2021 & 2020 & & \\ \hline Net Sales Revenue Cost of Goods Sold & $858,000 & $803,000 & & \\ \hline Gross Profit & 513,000 & 509,000 & & \\ \hline Operating Expenses: & 345,000 & 294,000 & & \\ Selling Expenses & & & & \\ Administrative Expenses & 126,000 & 114,000 & \\ \hline Total Operating expenses & 118,000 & 123,000 & & \\ \hline Operating Income & 244,000 & 237,000 & & \\ \hline Other income and (Expenses): Interest Revenue & 101,000 & 57,000 & & \\ Interest Expense & & 4,000 & 0 & \\ \hline Total Other Income and (Expenses) & (24,000) & (14,000) & \\ \hline Income Before Income Taxes & (20,000) & (14,000) & & \\ Income Tax Expense & 81,000 & 43,000 & & \\ Net Income & 33,000 & 17,000 & & \\ \hline \end{tabular}

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