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BUSN10239 Financial Statement Analysis Assignment Due: November 27, 2020 in MyCanvas (Weighted at 12.5% of your Final Mark) /25 marks Following you will find the Trial Balance for a company named Sabrina Corporation for two years, 2019 and 2018. The purpose of this assignment is to analyze the Financial Statement information by doing a horizontal analysis and ratio analysis. Once you have done your calculations (please show all your calculations), then you will analyze your results. You will comment on the company's trends, profit situation and liquidity situation. You can prepare your assignment in Word or in Excel. How to hand your assignment in? If you are preparing your assignment with a partner, only one student will hand in the Assignment and clearly mark each of the Student names and student numbers on the face of the Assignment. Sabrina Corporation At Dec 31, 2019 At Dec 31, 2018 ACCOUNTS CREDIT CREDIT $ 6.868 DEBIT 3 8.506 10,000 30,300 SHORT TERM INVESTMENTS ACCOUNTS RECEIVABLE 412.455 374,050 462,812 131.155 INVENTORY NOTES RECEIVABLE long Term 80.000 10,000 500.000 500,000 200.000 313.757 250,000 200.000 100.623 2,357 505 200.000 205.3 240.000 200,000 143,673 2.225.210 OFFICE BUILDING ACCUMULATED DEPRECIATION OFFICE BULDING) ACCOUNTS PAYABLE BANK LOAN. current COMMON STOCK, 100000 shares RETAINED EARNINGS SALES COST OF GOODS SOLD SHIPPING EXPENSE DEPRECIATION EXPENSE SALARIES EXPENSE RENT EXPENSE INSURANCE EXPENSE 1.715,440 1.640 200 22.000 22.000 21,500 23.000 296,599 280,000 40.554 45,955 16.200 16450 5 3,591.885 TOTALS 3,591.885 3.354,225 3.1354 225 INSTRUCTIONS: 1. Based on the above trial balance, calculate the % changes (horizontal analysis) from last year for all accounts. (6 marks) Now analyze your results and explain in detail the prends you are seeing from your analysis. (2 marks) Are there any areas that need management attention? Explain your answer. (1 mark) 2. Calculate the following for both years (2019 and 2018): (12 marks) a. Working capital b. Current ratio c. Gross profit margin (96) d. Net Profit Margin (%) e. Return on Equity f. Return on Assets Compare this year's profitability to last year. Is there an improvement? Overall, what would you say about the company's profitability? (2 mark) Compare this year's liquidity ratios to last year. Is there an improvement? Overall, what would you say about the company's liquidity? (2 mark)

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