Joshua and WhiteTechnology’s financial statements

Joshua & White (J&W) Technology’s financial statements are also shown
here. Answer the following questions. (Note: Industry average ratios are
provided in Ch03 P15 Build a Model.xlsx.)
a. Has J&W’s liquidity position improved or worsened? Explain.
b. Has J&W’s ability to manage its assets improved or worsened? Explain.
c. How has J&W’s profitability changed during the last year?
d. Perform an extended DuPont analysis for J&W for 2018 and 2019. What
do these results tell you?
e. Perform a common size analysis. What has happened to the
composition (that is, percentage in each category) of assets and
f. Perform a percentage change analysis. What does this tell you about
the change in profitability and asset utilization?

Sample Solution