Answer Happy

Exercise 2. Common Size Income Statement and Balance Sheet (30 marks) Below you find a summary of Attrex performance for the last 2-3 years. Prepare a common size income statement and balance sheet and comment on the trends in profitability and leverage. Attrex Income Statement 12/31/21 12/31/20 12/31/19 Revenue: Net sales $3,200,000 $2,816,000 $2,703,360 Interest revenue $40.000 $36.000 $12,000 Gain or loss on sales of MS $34.000 SO $60,000 Total Revenue & gans / losses $3,274,000 $2,852,000 $2.775,360 Costs & Expenses: COGS $1,620,000 $1,351.680 $1,216,512 Opex (depreciation included) $1,240,000 $1.210,880 $1,216,512 depreciation $150,000 596,000 $99,000 Interest Expense $42.000 $52.000 359.000 Income Tax Expense $100,000 $73,000 395,000 Gain or loss on sales of Fixed Assets $12.000 $8,000 30 Total Costs, Expenses, Gains & Losses $3,014,000 $2.680,160 $2,577,024 Net Income $260,000 $171,840 $199,336

Attrex Balance Sheet 12/31/21 12/31/20 Cash MS AR Interest Receivable NR Inventories Prepayments Plant Assets (net) Total Assets $164,000 $300,000 5335,000 $3,200 $998.000 $375,000 $48,000 $1,875,000 $4,098,200 $244.000 $278,000 $275,000 $5,200 $982,000 $435.000 $42.000 $1,561.000 $3,822,200 AP accrued OpEx liabilities Interest payable income taxes payable NP short term LT Debt Capital Stock Add. PIC Retained Earnings Total Liabilities & Stockholder's Equity 5458,000 $80,000 $66,000 $124,000 $270,000 $1.160,000 $100.000 $730.000 51,110,200 54,098,200 $474,000 $88,000 $62,000 $139,000 280,000 $1.160,000 $80,000 $570,000 $970.200 53,822,200