Additional data as of December 31, 2004: Inventory = $100,000; Total assets = $900,000; Common stockholders' equity = $540,000

1. Compute the following listed ratios for 2006 and 2005 showing supporting calculations.

a. Current ratio

b. Debt to total Assets

c. Times interest earned

d. Inventory turnover

e. Profit margin ratio

f. Return on common stockholders' equity

g. Return on assets

Perform horizontal and vertical analysis on Westward’s financial statements, show your results.

Westward Corporation
Balance Sheet
Year 2006
Assets	Amount	Amount
Current assets
Cash and temporary
Investments	$ 30,000
Accounts receivable	$ 70,000
Inventories	$ 120,000
Total current assets	$ 220,000
Property, plant, and
equipment (net)	$ 780,000
Total assets		$ 1,000,000
Liabilities and Stockholders' Equity
Current liabilities	$ 80,000
Long-term liabilities	$ 300,000
Common stockholders' equity	$ 620,000
Total liabilities and stockholders' equity		$ 1,000,000

Westward Corporation
Income Statement
For the Year Ended December 31, 2006
Revenues		$ 2,000,000
Expenses
Cost of goods sold	$ 1,080,000
Selling and administrative
expenses	$ 495,000
Interest expense	$ 30,000
Total expenses		$ 1,605,000
Income before income taxes		$ 395,000
Income tax expense		$ 140,000
Net income		$ 255,000

Westward Corporation
Balance Sheet
Year 2005
Assets	Amount	Amount
Current assets
Cash and temporary
investments	$ 40,000
Accounts receivable	$ 90,000
Inventories	$ 150,000
Total current assets	$ 280,000
Property, plant, and
equipment (net)	$ 800,000
Total assets		$ 1,080,000
Liabilities and Stockholders' Equity
Current liabilities	$ 140,000
Long-term liabilities	$ 320,000
Common stockholders' equity	$ 620,000
Total liabilities and stockholders' equity		$ 1,080,000

Westward Corporation
Income Statement
For the Year Ended December 31, 2005
Revenues		$ 2,500,000
Expenses
Cost of goods sold	$ 1,750,000
Selling and administrative
expenses	$ 500,000
Interest expense	$ 30,000
Total expenses		$ 2,280,000
Income before income taxes		$ 220,000
Income tax expense		$ 77,000
Net income		$ 143,000