Given the following balance sheet, income statement, historical ratios and industry averages, calculate the Pulp, Paper, and Paperboard, Inc. financial ratios for the most recent year. Analyze its overall financial situation for the most recent year. Analyze its overall financial situation from both a cross sectional and time series viewpoint.

Income Statement

Pulp, Paper and Paperboard, Inc.

For the Year Ended December 31, 2008

Sales Revenue ..............$2,080,976

Less: Cost of Goods Sold ......... 1,701,000

Gross Profits ............... $ 379,976

Less: Operating Expenses .......... 273,846

Operating Profits ............. $ 106,130

Less: Interest Expense ........... 19,296

Net Profits Before Taxes ........... $ 86,834

Less: Taxes (40%) ............. 34,810

Net Profits After Taxes........... $ 52,024

Balance Sheet

Pulp, Paper and Paperboard, Inc.

31-Dec-08

ASSETS

Cash ................. $ 95,000

Accounts receivable .......... 237,000

Inventories .............. 243,000

Total current assets ........... $ 575,000

Gross fixed assets ............ 500,000

Less: Accumulated depreciation ........ 75,000

Net fixed assets .............. $ 425,000

Total assets ..............$1,000,000

LIABILITIES & STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable .............$ 89,000

Notes payable .............. 169,000

Accruals ............... 87,000

Total current liabilities ........ $ 345,000

Long-term debts ............. 188,000

Total liabilities .......... $ 533,000

Stockholders' equity

Common stock .............. 255,000

Retained earnings ............ 212,000

Total stockholders' equity ...... $ 467,000

Total liabilities and stockholders' equity . $1,000,000