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PROJECT OVERVIEW

Review the 2013 and 2014 financial statements from the publicly-traded company Zigoscar Corporation. Conduct a financial analysis and calculate financial ratios.

Refer to the Course Schedule within the Syllabus for specific project deliverables and due dates.

DELIVERABLE

From this spreadsheet of Income Statements and Balance Sheets for Zigoscar Corporation, complete the following:

Create a Statement of Cash Flows for Operations for the year 2014.

Conduct a Horizontal analysis of the above income statement and balance sheet showing the amount and percentage changes from 2013 to 2014. (Round to one decimal place.)

Perform the following ratio analysis for 2014:

Current Ratio

Quick Ratio

Receivables Turnover

Inventory Turnover

Profit Margin

Return on Assets

Debt to Equity Ratio

Return on Equity

Below are the condensed comparative Income Statements and Balance Sheets for Zigoscar
Corporation for 2014 and 2013.
		Zigoscar Corporation
		Comparative Income Statements
		For the years ended December 31, 2014 and 2013
			2014		2013
Net Sales			$ 6,553,600		$ 6,292,800
Cost of goods sold			4,177,600		4,016,800
Gross Margin			2,376,000		2,276,000
Operating expenses:
	Selling Expenses		953,600		1,036,000
	Administrative expenses		894,400		846,400
	Total Expenses		1,848,000		1,882,400
Income from operations			528,000		696,900
Interest Expense			131,200		78,400
Income before taxes			396,800		$ 315,200.00
Income tax expense			124,800		113,600
Net Income			$ 272,000		$ 21,600
Earnings per share			$ 3.40		$ 2.52
		Zigoscar Corporation
		Comparative Balance Sheets
		December 31, 2014 and 2013
			2014		2013
		Assets
Cash			$ 162,400		$ 81,600
Accounts receivable (net)			471,200		458,400
Inventory			1,149,600		1,189,600
Property, Plant & Equip (net)			1,500,000		1,440,000
Total Assets			$ 3,283,200		$ 3,169,600
		Liabilities and Stockholders Equity
Accounts payable			$ 535,200.00		$ 954,400.00
Notes payable (short term)			400,000		800,000
Bonds payable			800,000		-
Common stock, $10 par value			800,000		800,000
Retained earnings			748,000		615,200
Total Liab. & Stockholders Equity			$ 3,283,200		$ 3,169,600
The depreciation expense in 2014 was 5,000. From this information, please complete the following:
1. Create a Statement of Cash Flows of Operations for the year 2014
2. Conduct a Horizontal analysis of the above income statement and balance sheet showing
the amount and percentage chages from 2013 to 2014 (Round to one decimal place).
3. Perform the following ratio analysis for 2014.
	1. Current Ratio
	2. Quick Ratio
	3. Receivables Turnover
	4. Inventory Turnover
	5. Profit margin
	6. Return on assets
	7. Debt to Equity ratio
	8. Return on Equity

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