need to be posted in excel in the following: B&L; Landscapes, Inc. Mini Practice

Question

need to be posted in excel in the following:

B&L; Landscapes, Inc. Mini Practice Part 3 Bill Graham and Larry Miller incorporated B&L; Landscapes, Inc. on July 1, 2014. The business c nsists of lawn care and sprinkler system installations. In addition, they also sell two types of fertilizer At the end of the first year, Bill and Larry have asked you to analyze their first year of operations and given them some suggestions on areas that may need improvement as they move into their second year. Below are the balance sheets for the date of incorporation and the end of the first year of operations. B&L; Landscapes, Inc. Balance Sheet July 1, 2014 Current Assets Cash Accounts Receivable (net Prepaid Insurance Inventory Total Current Assets Property, Plant and Equipment Land Building Equipment Total Assets $27,.500 3,500 1,500 6,000 $38,500 8,000 25,000 18,500 51,500 0,000 Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Long-Term Liabilities Notes Payable Total Liabilities Stockholders' Equity Paid-in Capital Capital Stock 5% Preferred stock, $100 par value non-cumulative, non-participating 5,000 shares authorized, 50 shares issued and outstanding Common stock, $1 par value, 150,000 shares authorized, 30,000 shores issued and outstanding Total Capital Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $10,000 45,000 $55,000 5,000 30,000 35,000 0 35,000 0,000

Explanation / Answer

Horizontal Analysis Vertical Analysis Condensed Balance Sheet Condensed Balance Sheet Increase or ( Decrease) 2015 Industry Average 2015 2014 Amount Percent Amount Percent Percent Variance Asset Asset Current Asset 60750 38500 22250 58% Current Asset 60750 51% 45% 6% Plant Asset 57250 51500 5750 11% Plant Asset 57250 49% 55% -6% Total Asset 118000 90000 28000 31% Total Asset 118000 100% 100% Liabilities Liabilities Current Liabilities 17500 10000 7500 75% Current Liabilities 17500 15% 18% -3% Long Term Liabilities 45000 45000 0 0% Long Term Liabilities 45000 38% 15% 23% Total Liabilites 62500 55000 7500 14% Total Liabilites 62500 53% 33% 20% Stockholder's Equity Stockholder's Equity Common Stock 30000 30000 0 0% Common Stock 30000 25% 10% 15% Preferred Stock 5000 5000 0 0% Preferred Stock 5000 4% 20% -16% Retianed Earning 20500 0 20500 0% Retianed Earning 20500 17% 37% -20% Total Stockholder's Equity 55500 35000 20500 59% Total Stockholder's Equity 55500 47% 67% -20% Total Liability Stockholder's Equity 118000 90000 28000 31% Total Liability Stockholder's Equity 118000 100% 100% 2. From the Vertical Analysis, area the merit Function further investigation are:- i. Company's Current Asset are higher than Inddutry Average, shows that Company's Credit policy might be more liberal ii. Company's long term Debt as a % of total asset is significantly higher which shoes that company more leverage than Industry Standard 3. Computation of Require Ratio Ratio Formula Value Curretn Ratio Current Asset/Current Liability                                                                       3.47 Acid Test Ratio (Cash + Account Receivable)/Current Liability ($30125)/$17500=1.72 Profit Margin Net Income /Sales ($22500/201000)*100=11.19% Asset Tunover Net Sales/Average Total Asset ($201000/($90000+$118000)/2)=1.93 Return on Asset Net Income /Average Total Asset ($22500/$104000)=21.63% Debt to Asset Ratio (Short Term Debt+ Long Term Debt)/Total Asset ($62500/$118000)=0.53 Note : If Solution is as per your expectation , then please mark positive Rating

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