1) Using the companys financial data, calculate financial ratios for 2015 (projected) and compare them with industry average ratios. Interpret your results. Balance Sheets Estimated 2015 2014 2013 Assets Cash 85,632 7,282 57,600 Accounts Receivable 878,000 632,160 351,200 Inventories 1,716,480 1,287,360 715,200 Total Current Assets 2,680,112 1,926,802 1,124,000 Gross Fixed Assets 1,197,160 1,202,950 491,000 Less accumulated depreciation 380,120 263,160 146,200 Net Fixed Assets 817,040 939,790 344,800 Total Assets 3,497,152 2,866,592 1,468,800 Liabilities and Equity Accounts Payable 436,800 524,160 145,600 Notes Payable 300,000 636,808 200,000 Accruals 408,000 489,600 136,000 Total Current Liabilities 1,144,800 1,650,568 481,600 Long-term Debt 400,000 723,432 323,432 Common Stock 1,721,176 460,000 460,000 Retained Earnings 231,176 32,529 203,768 Total Equity 1,952,352 492,529 663,768 Total Liabilities and Equity 3,497,152 2,866,529 1,468,800 Income Statements Estimated 2015 2014 2013 Sales 7,035,600 6,034,000 3,432,000 COGS 5,875,992 5,528,000 2,864,000 Other Expenses 550,000 519,988 358,672 Total Operation Costs excl depreciation 6,425,992 6,047,988 3,222,672 EBITDA 609,608 -13,988 209,328 Depreciation 116,960 116,960 18,900 EBIT 492,648 -130,948 190,428 Interest Expense 70,008 136,012 43,828 EBT 422,640 -266,960 146,600 Taxes, 40% 169,056 -106,784 58,640 NI 253,584 -160,176 87,960 Ratio Analysis Estimated 2015 2014 2013 Industry Average Liquidity: Current 1.17 2.33 2.7 Quick 0.39 0.85 1 Asset Inventory Turnover 4.69 4.80 6.1 Management: Days Sales Outstanding 38.24 37.35 32 Fixed Assets Turnover 6.42 9.95 7 Total Assets Turnover 2.10 2.34 2.6 Debt Debt Ratio 0.83 0.55 50.00% Management: Times Interest Earned -0.96 4.34 6.2 Profitability: Net Profit Margin (NPM) -0.03 0.03 3.50% ROA -0.06 0.06 9.10% ROE -0.33 0.13 18.20% 2) Determine the net operating profit after taxes for 2014. 3) What are the amounts of net operating working capital for 2014 and 2013? 4) Determine the amount of total investor-supplied operating capital (invested capital) for 2014 and 2013. 5) What is the free cash flow for 2014? 6) Describe the uses of free cash flow.