PROJECT OVERVIEW Review the 2013 and 2014 financial statements from the publicly

Question

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

Explanation / Answer

PROJECT OVERVIEW Review the 2013 and 2014 financial statements from the publicly

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