Sports Continuing

Review Case 12.21 in your textbook. Share your observations and recommendations for the company based on the data provided. Please review the posts of your classmates before responding to Case 12.21; provide responses that are different than what your classmates’ have posted and recommended.To participate in follow up discussion, ask questions and post comments regarding classmates’ posts or respond to follow-up questions posted by the instructor.

Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.

C&C Sports Continuing Case12.21 (LO 1, 2, 3, 4) Comprehensive Financial Statement Analysis Using Exhibit 12.9 as a guide, compare C&C Sports’ performance to the industry averages. What particular observations and recommendations do you have for George Douglas, president of C&C Sports?

Matthias Medical Comparative Balance Sheet

As of December 31

2020                                2019

Assets

Current assets Cash                             $ 397,220                           $ 417,400

Accounts receivable, net                       906,800                         776,400

Inventory                                                743,000                            681,000

Other current assets                            381,300                            247,000

Total current assets                             2,428,320                          2,121,800

Property, plant, & equipment, net       8,678,000                           8,440,100

Total assets                                        $ 11,106,320                         $10,561,900

Liabilities and Stockholders’

EquityCurrent liabilities                          $ 2,934,700                        $ 2,846,000

Long-term debt                                         3,700,600                      3,892,600

Total liabilities                                    6,635,300                                  6,738,600

Preferred stock, $5 par value             58,900                                     58,900

Common stock, $0.25 par value           104,600                             103,800

Retained earnings                                  4,307,520                           3,660,600

Total stockholders’ equity                    4,471,020                               3,823,300

Total liabilities and stockholders’ equity  $11,106,320                   $10,561,900

Matthias Medical Comparative Income Statement and Statement of Retained Earnings

For the Year2020

2019Sales revenue (all on account)                $10,177,200                      $ 9,613,900

Cost of goods sold                                                  5,411,800                        5,298,700

Gross profit                                                        4,765,400                              4,315,200

Operating expenses                                         2,899,900                               2,634,100

Net operating income                                     1,865,500                                1,681,100

Interest expense                                           300,300                                        308,600

Net income before taxes                                 1,565,200                              1,372,500

Income taxes (30%)                                       469,560                                 411,750

Net income                                                     $ 1,095,640                          $ 960,750

Dividends paid Preferred dividends             29,450                                   29,450

Common dividends                                      419,270                                 413,000

Total dividends paid                                448,720                                      442,450

Net income retained                                     649,920                             518,300

Retained earnings, beginning of year     3,660,600                             3,142,300

Retained earnings, end of year                       $ 4,307,520                  $ 3,660,600