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1 Refer to Question 27 (pp. 132-133) from the textbook which provided the last two years of financial statements for Carver Industries as follows: LI Analyze the firm's financial performance during 2012-2013 in terms of its liquidity asset management, capital structure and profitability Comment on what your view as weaknesses in performance of the company in the year 2013 as compared to 2012 Perform Dupont analysis for 2012 and 2013. 1.4 At the end of 2013, the firm has 5,000 shares of common stock outstanding with for SiS cach What were the firm's EPS, PE, and market-to-book ratio? Carver Industries Balance Sheets for December 31, 2012 and 2013 Cash Account receivable Inventories Total current assets Land Building & equipment Less: Accumulated depreciation Total fixed assets Total assets 2012 11.250 15.625 36.250 63.125 25.000 87.500 2013 650 20,800 59,150 80,600 33,800 130,000 (35.000) 77.500 140.625 (49,400) 114.400 195,000 Account payable Short-term banknotes Total current liabilities Long-term debt Common stock Retained earnings Common equity Total debt & cquity 13.125 21.2.50 34 375 35.938 39.375 30.938 70313 140.626 28,600 61,100 89,700 29,835 40.950 34,515 75,465 195,000 Carver Industries Income Statements Years Ending December 31, 2012 and 2013 2012 2013 Sales (all credit) 187,500 400,000 Cost of goods sold (112.500) (240,000) Gross profit 75.000 160,000 Operating expenses Fixed cash operating expenses (31,500) (52,500) Variable operating expenses (18,750) (40,000) Depreciation expense (6,750) (25,000) Total operating expenses (57.000) (117.500) Earnings before interest & taxes 18.000 42.500 "VE VULTURE 2/2 Long-term debt Common stock Retained earnings Common cquity Totul debt & equity 35,938 39,375 30,938 70,313 140,626 UUU 29.835 40,950 34.515 75,465 195,000 2012 Carver Industries Income Statements Years Ending December 31, 2012 and 2013 2013 Sales (all credit) 187,500 400,000 Cost of goods sold (112,500) (240.000) Gross profit 75.000 160,000 Operating expenses Fixed cash operating expenses (31.500) (52,500) Variable operating expenses (18.750) (40,000) Depreciation expense (6.750) (25,000) Total operating expenses (57,000) (117,500) Earnings before interest & taxes 18.000 42.500 Interest expense (5,719) (9,094) Earnings before taxes 12,281 33.406 Taxes (6,141) (16,703) Net income 6,140 16,703 The End

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