Cresent Case Sol

Balance sheet

2004 2005 20062007 E(with tradediscount)2007 ECash

45 53 2332 32

Accounts Receivable

187 231 264317.9304193 317.9304193

Inventory

243 278 379429.1193577 437.8768956

Total Current Assets475 562 666 779.049777 787.8073149Property and Equipment

187 202 252303.4790366 303.4790366

Accumulated Depreciation

-74 -99 -134-173.4522748-173.4522748

Total PP&E113 103 118

130.0267618 130.0267618

Total Assets588 665 784

909.0765388 917.8340767

Accounts Payable

36 42 12058.78347366 179.9494092

Line of Credit Payable

149 214 249395 310

Accrued Expenses

13 14 1414 14

Long Term Debt, CurrentPosition

24 24 2424 24

Current Liabilities222 294 407

491.7834737 527.9494092

Long term debt

182 158 134110 110

Total Liabilities

404 452 541 601.7834737 637.9494092

Net Worth

184 213 243308 279

Total Liabilities and Net Worth588 665 784

909 917

Cash flow statement

Cash Flow Statement

2005 2006

   C   F   O 

PAT29 30Depreciation25 35Increase in Account Receivable-44 -33Increase in Inventory-35 -101Increase in Accounts payable6 78Increase in Lines of Credit65 35Increase in Accrued Expenses1 00 0CFODebt Repaid-24 -24CFIInvestment in Fixed Asset-15 -50Change in Cash Balance8 -30

Ratio Analysis

Ratio Analysis

2004 2005 2006Current Ratio2.14 1.91 1.64Quick Ratio1.05 0.97 0.71Inventory Turnover5.37 5.52 4.80Days Of Inventory68.02 66.10 76.09Days Sales Outstanding42.03 44.01 42.98Days Payables10.08 9.99 24.5Fixed Asset Tunover Ratio14.37 18.60 19.00ROA2.38% 4.36% 3.83%ROE7.61% 13.62% 12.35%Cash Conversion Cycle99.97 100.12 95

Conclusions

Inventory turnover ratio for 2005 is (1535/278=5.89) and for 2006 is (1818/379=4.8). It showsthat Jones has been overconfident in their predictions. Increasing the inventory is a reason thatthe company is facing cash money shortage. All of these have dramatically increased