Financial Statement & Cash Flow Analysis

Financial Statement & Cash Flow Analysis

Part A

Jaedan's Free Cash Flow

Net Cash Flow = Net Operating Cash Flow - Capital Expenditure

Net Operating Cash Flow = Net Income + Non-Cash Expenses + Working Capital

Capital expenditure = Change in assets - Change in liabilities

Net Operating Cash flow

Net Income

$ 62,568,975

Non-Cash Expenses (Amortization & Depreciation)

$ 700,000

Working Capital (Current assets - Current liabilities)

$ 6,555,819

Net Operating Cash Flow

$ 69,824,794

Capital Expenditure

Change in Assets

 

2010

Cash

$ 3,689,000

Accounts Receivables

$ 5,423,000

Marketable Securities

$ 1,836,000

Inventories

$ 4,118,000

Fixed assets

$ 14,811,000

Total Assets for 2010

$ 29,877,000

 

 

 

2009

Cash

$ 871,319

Accounts Receivables

$ 3,587,000

Marketable Securities

$ 2,867,500

Inventories

$ 3,210,000

Fixed assets

$ 11,879,000

Total Assets for 2009

$ 22,414,819

 

 

Change in Assets

$ 7,462,181

 

 

Change in Liabilities

 

2010

Accounts Payables

$ 3,136,000

Notes Payables

$ 706,000

Accruals

$ 500,000

Long-term Debt

$ 3,046,000

Total Liabilities for 2010

$ 14,811,000

 

 

 

2009

Accounts Payables

$ 2,946,000

Notes Payables

$ 684,000

Accruals

$ 350,000

Long-term Debt

$ 3,046,000

Total Liabilities for 2009

$ 7,026,000

 

 

Change in Liabilities

$ 7,785,000

 

 

Capital Expenditure

$ (322,819)

Net Cash Flow

Net Operating Cash Flow

$ 69,824,794

Capital Expenditure

$ (322,819)

Net Cash Flow

$ 70,147,613

Jaedan's Liquidity

Current Ratio

Current Assets

 

Cash

$ 871,319

Accounts Receivables

$ 3,587,000

Marketable Securities

$ 2,867,500

Inventories

$ 3,210,000

Total Current Assets for 2009

$ 10,535,819

Current Liabilities

Accounts Payables

$ 2,946,000

Notes Payables

$ 684,000

Accruals

$ 350,000

Total Liabilities for 2009

$ 3,980,000

Current Ratio

2.647

Quick Ratio

Current Assets

 

Cash

$ 871,319

Accounts Receivables

$ 3,587,000

Marketable Securities

$ 2,867,500

Total Current Assets for 2009

$ 7,325,819

Current Liabilities

Accounts Payables

$ 2,946,000

Notes Payables

$ 684,000

Accruals

$ 350,000

Total Liabilities for 2009

$ 3,980,000

Current Ratio

1.841

Jaedan's Debt Ratios

Debt Ratio

Total Liabilities

 

Accounts Payables

$ 2,946,000

Notes Payables

$ 684,000

Accruals

$ 350,000

Long-term Debt

$ 3,046,000 Total Liabilities for 2009

$ 7,026,000

Total Assets

 

Cash $ 871,319

Accounts Receivables

$ 3,587,000

Marketable Securities

$ 2,867,500

Inventories $ 3,210,000

Fixed assets

$ 11,879,000 Total Assets for 2009

$ 22,414,819

Debt Ratio

0.313

Debt to Equity Ratio

Total Debt

 

Accounts Payables

$ 2,946,000

Notes Payables

$ 684,000

Accruals

$ 350,000

Long-term Debt

$ 3,046,000 Total Liabilities for 2009

$ 7,026,000

Total Equity

 

Preferred Stock

$ 100,000

Common Stock

$ 4,000,000

Paid-in capital in excess of par

$ 4,500,000

Retained earnings

$ 1,628,819 Total Equity for 2009

$ 10,228,819

Debt/Equity Ratio

0.687

Asset to Equity Ratio

Total Assets

 

Cash $ 871,319

Accounts Receivables

$ 3,587,000

Marketable Securities

$ 2,867,500

Inventories $ 3,210,000

Fixed assets

$ 11,879,000 Total Assets for 2009

$ 22,414,819

Total Equity

 

Preferred Stock

$ 100,000

Common Stock

$ 4,000,000

Paid-in capital in excess of par

$ 4,500,000

Retained earnings

$ 1,628,819 Total Equity for 2009

$ 10,228,819

Assets to Equity Ratio

2.191

Times Interest Earned Ratio

EBIT

$ 9,873,447

Interest Expense

$ 375,000

Times Interest Earned Ratio

26.33

Profitability Ratios

Gross Profit Margin

Gross Profit

$ 11,573,447

Revenue

$ 38,578,155

Gross Profit Margin

0.300

Operating Profit Margin

Operating Profit

$ 9,873,447

Revenue

$ 38,578,155

Operating Profit Margin

0.256

Net Profit Margin

Net Profit

$ 6,268,975

Revenue

$ 38,578,155

Net Profit Margin

0.163

Return On Total Assets

Net Income

$ 6,268,975

Total Assets

$ 22,414,819

Return On Total Assets

0.280

Return On Total Equity

Net Income

$ 6,268,975

Shareholder's Equity

$ 10,228,819

Return On Total Assets

0.613

Part B

Financial Strengths & Weaknesses

The analysis of company's ratios reveals the financial performance as well as financial position of the company, and given industrial ratio also provides the clear picture of company's standing within the industry. Therefore, considering the financial ratios of the company and its industry, three strengths as well as three weaknesses ...