Marriott Vacations Worldwide Balance Sheets, Income Statemen…

our Company #1 – Balance Sheets, Income Statements, Statements of Cash Flows, and Supplemental Data

This is the first of several spreadsheets and assignments you will complete related to the Your Company Project.

Download and save this template spreadsheet, . This is a financial statement analysis spreadsheet template file accompanying the Financial Reporting, Financial Statement Analysis and Valuation textbook.
Name and save your spreadsheet file as ACG 5153 YC1 LastName FirstName.
Open the spreadsheet tab titled Data. This spreadsheet is set up so that you enter Your Companys data in the green shaded cells with a blue font. You must manually type the data in those cells FOR ALL SIX YEARS.

1. 1. Input Your Company’s name, your name as analyst, and the six years column headings on the spreadsheet.
  2. Ensure that you have SIX years of Annual Reports downloaded for your company as data for input into the FASP 9e spreadsheet. (You will use the six years of data downloaded from SEC EDGAR 10-K reports for Your Company for supplemental data as needed.)
  3. Manually type in the Balance Sheet, Income Statement, Statement of Cash Flows, and Supplementary Data amounts/numbers into the appropriate cells in the Data tab of the FSAP 9e spreadsheet file FOR ALL SIX YEARS. See the textbook authors instructions on entering data included in in the FSAP 9e spreadsheet.
  4. As you input your data, be sure to notice that the most recent year is the year furthest to the right. The years in the FSAP 9e spreadsheet are in the opposite order of the data downloaded in the Annual Reports from Your Company’s website and from SEC Edgar.
  5. Ensure that your data entry is correct and that all the cells in lines 154 thru 156 (FINANCIAL DATA CHECKS) on the “Data” tab, and lines 14 thru 17 (DATA CHECKS) on the Analysis tab of the FSAP 9e spreadsheet file show “0” as the calculated amounts.
  6. Use amounts in the Data Check cells on both tabs in the spreadsheet to help you identify input errors.
Review the Rubric for Assignment Your Company #1 to ensure that your completed assignment meets the grading criteria.
Save the data you entered in your spreadsheet file named as ACG 5153 YC1 LastName FirstName.

Requirements: as required

January 21, 2026

FINC600: Corporate Finance (need in 8 hours)

Week 2 Assignment: Case 1 – Ratios and Financial Planning

Turnitin

This assignment will be submitted to Turnitin.

Instructions

Case 1 – Ratios and Financial Planning

[Chapter 3, page 81]

In 1969, Tom Warren founded East Coast Yachts. The companys operations are located near Hilton Head Island, South Carolina, and the company is structured as a sole proprietorship. The company has manufactured custom midsize, high-performance yachts for clients, and its products have received high reviews for safety and reliability. The companys yachts have also recently received the highest award for customer satisfaction. The yachts are primarily purchased by wealthy individuals for pleasure use. Occasionally, a yacht is manufactured for purchase by a company for business purposes.

The custom yacht industry is fragmented, with a number of manufacturers. As with any industry, there are market leaders, but the diverse nature of the industry ensures that no manufacturer dominates the market. The competition in the market, as well as the product cost, ensures that attention to detail is a necessity. For instance, East Coast Yachts will spend 80 to 100 hours on hand-buffing the stainless steel stem-iron, which is the metal cap on the yachts bow that conceivably could collide with a dock or another boat.

Several years ago, Tom retired from the day-to-day operations of the company and turned the operations of the company over to his daughter, Larissa.

Because of the dramatic growth at East Coast Yachts, Larissa decided that the company should be reorganized as a corporation and, today, the company is publicly traded under the ticker symbol ECY.

Dan Ervin was recently hired by East Coast Yachts to assist the company with its short-term financial planning and also to evaluate the companys financial performance. Dan graduated from college five years ago with a finance degree, and he has been employed in the treasury department of a Fortune 500 company since then.

The companys past growth has been somewhat hectic, in part due to poor planning. In anticipation of future growth, Larissa has asked Dan to analyze the companys cash flows. The companys financial statements are prepared by an outside auditor.

After Dans analysis of East Coast Yachts cash flow (at the end of our previous chapter), Larissa approached Dan about the companys performance and future growth plans. First, Larissa wants to find out how East Coast Yachts is performing relative to its peers. Additionally, she wants to find out the future financing necessary to fund the companys growth. In the past, East Coast Yachts experienced difficulty in financing its growth plan, in large part because of poor planning. In fact, the company had to turn down several large jobs because its facilities were unable to handle the additional demand. Larissa hoped that Dan would be able to estimate the amount of capital the company would have to raise next year so that East Coast Yachts would be better prepared to fund its expansion plans.

To get Dan started with his analyses, Larissa provided the following financial statements. Dan then gathered the industry ratios for the yacht manufacturing industry.

**East Coast Yachts**
**2023 Income Statement**
Item	Income
Sales	$495,381,600
Cost of goods sold	$357,466,500
Selling, general, and administrative	$ 59,200,300
Depreciation	$ 16,166,700
EBIT	$ 62,548,100
Interest expense	$ 8,910,000
EBT	$ 53,638,100
Taxes (25%)	$ 13,409,525
Net Income	$ 40,228,575
Dividends	$ 17,437,050
Retained earnings	$ 22,791,525

**East Coast Yachts**
**2023 Balance Sheet**
Current Assets	Amount	Current Liabilities	Amount
Cash and equivalents	$ 9,096,300	Accounts payable	$ 36,146,575
Accounts receivable	$ 15,131,900	Accrued expenses	$ 5,151,400
Inventory	$ 16,322,100	Total current liabilities	$ 41,297,975
Other	$ 949,400
Total current assets	$ 41,499,700
Fixed assets		Long-term debt	$137,200,000
Property, plant, and equipment	$370,828,800	Total long-term liabilities	$137,200,000
Less accumulated depreciation	(92,206,700)
Net property, plant, and equipment	$278,622,100
Intangible assets and others	$ 6,094,800	Stockholders’ equity
Total fixed assets	$284,716,900	Preferred stock	$ 1,595,700
		Common stock	$ 29,057,000
		Capital surplus	$ 24,178,000
		Accumulated retained earnings	$131,382,725
		Less treasury stock	(38,494,800)
		Total equity	$ 147,718,625
Total assets	$326,216,600	Total liabilities and shareholders’ equity	$326,216,600

**Yacht Industry Ratios**
Ratio	Lower Quartile	Median	Upper Quartile
Current ratio	.86	1.51	1.97
Quick ratio	.43	.75	1.01
Total asset turnover	1.10	1.27	1.46
Inventory turnover	12.18	14.38	16.43
Receivables turnover	10.25	17.65	22.43
Debt ratio	.32	.56	.61
Debt-equity ratio	.83	1.13	1.44
Equity multiplier	1.83	2.13	2.44
Interest coverage	5.72	8.21	10.83
Profit margin	5.02%	7.48%	9.05%
Return on assets	7.05%	10.67%	14.16%
Return on equity	14.06%	19.32%	26.41%

Assignment Directions

Write a case analysis of 2,000 2,500 words (8 to 10 pages), content (title page and reference page not included) in proper APA format, covering the following requirements:

East Coast Yachts uses a small percentage of preferred stock as a source of financing. In calculating the ratios for the company, should preferred stock be included as part of the companys total equity?
Calculate all of the ratios listed in the industry table for East Coast Yachts for 2023. (Use Excel to do the calculations, then copy and paste them into your paper).
Compare the performance of East Coast Yachts to the industry as a whole. For each ratio, use decision criteria and comment on why it might be viewed as positive or negative relative to the industry. Suppose you create an inventory ratio calculated as inventory divided by current liabilities. How would you interpret this ratio? How does East Coast Yachts compare to the industry average for this ratio?
Calculate the sustainable growth rate for East Coast Yachts. Calculate external funds needed (EFN) and prepare pro forma income statements and balance sheets assuming growth at precisely this rate. Recalculate all of the ratios in the previous question given these new criteria. What does your analysis conclude? (Use Excel to do the calculations, then copy and paste them into your paper).
As a practical matter, East Coast Yachts is unlikely to be willing to raise external equity capital, in part because the shareholders dont want to dilute their existing ownership and control positions. However, East Coast Yachts is planning for a growth rate of 20 percent next year. What are your conclusions and recommendations about the feasibility of East Coasts expansion plans?
Most assets can be increased as a percentage of sales. For instance, cash can be increased by any amount. However, fixed assets often must be increased in specific amounts because it is impossible, as a practical matter, to buy part of a new plant or machine. In this case, a company has a staircase or lumpy fixed cost structure. Assume that East Coast Yachts is currently producing at 100 percent of capacity and sales are expected to grow at 20 percent. As a result, to expand production, the company must set up an entirely new line at a cost of $75 million. Prepare the pro forma income statement and balance sheet given these new criteria. What is the new EFN with these assumptions? What does this imply about capacity utilization for East Coast Yachts next year? (Use Excel to do the calculations, then copy and paste them into your paper).

Submission Guidelines

Prepare this Assignment according to the APA guidelines, including a title page, an introduction, and a conclusion. An abstract is not required. Usein-text citations and include a References section. A template is included in the Resources and Supports.
Calculate all financial data in an Excel worksheet (preferred) and submit with the assignment. If calculations are shown in Word, please show step by step. Place in Appendix (page after References) and refer to the information in the content of the paper. Please label/organize the calculations in detail.
In your report, make certain that you include at least three (3) credible outside references from search engines or scholarly sources from the APUS Online Library.
Note that your attached paper will automatically be submitted to Turnitin, and an Originality Report should be sent back to the classroom within around 15 minutes. The Originality report does not actually recommend changes. It does point out where you may need to add a citation or quotation marks (if not already cited). Once you use it a few times, you will appreciate this tool, as it will assist you in improving quality and content, as well as avoiding plagiarism. Your goal is to keep direct quotations to a minimum and to make sure that you do not just cut and paste material. Ensure that all your references are cited. Students should strive for a TII report with a similarity index of less than 20%.

In the Assignment dropbox, please attach your paper as a file; do not copy & paste. Submit your assignment by 11:59 pm ET, Day 7 (Sunday).

Your paper will be evaluated according to the Writing Assignment Grading Rubric shown below. To maximize your grade, be sure to use the proper organization (intro, body, conclusion) and follow APA style. Your paper should have a title page and reference page, but you do not need an abstract for this assignment. See the PowerPoint presentation attached for APA assistance.

This paper will be graded according to the FINC Graduate Grading Paper Rubric

Be sure to review the following before submitting your assignment:

Assignment Rubric:
- If you do not see the rubric, in the blue horizontal navigation bar select Course Tools, then Assignments. Select the appropriate assignment, and the rubric will be located near the bottom of the page.

This Assignment aligns with the following:

Course Objective:
Learning Objectives:

Resources and Supports

: You have free access as an APUS student. Sign in with your MyCampus Email credentials.
: Watch this 3-minute video if you need guidance on submitting your assignment.

Requirements: 2,000 2,500 words (8 to 10 pages), content (title page and reference page not included)

Requirements: Need in 8 hours

January 20, 2026