10 points Save A Use the following Financial Statements to calculate each ratio listed for 12/31/2011. Use 365 day year. Use averages where appropriate. (10 points total) Income Statement 12/31/2011 Balance Sheet 12/31/2011 12/31/2010 Sales 200,000 Cash 30.000 25,000 Cost of Good Sold 150.000 Marketable Securities 20,000 22,000 Gross Profit 50,000 Accounts Receivable 35,000 29.500 Inventory 80.000 70,000 Selling and Administrative exp 20.000 Total Current Assets 165,000 146,500 Depreciation Expense 2.500 Operating Profit (EBIT) 27,500 Net Plant and Equipment 100,000 102 500 Total Asso 265,000 249,000 Interest Expense 4.500 Accounts Payable 50,000 45,000 Earnings Before Taxes (EBT) 23.000 Notes Payable 18.000 17.000 Total Current Liabilities 68,000 62,000 Tax (35%) 8.050 Net Income 14.950 Long Term Liabilbes 90,000 93,000 Total Liabilities 158,000 155,000 Dividends Paid 1.950 Increase in Retained Earnings 13.000 Common Stock 17.000 17,000 Retained Eamings 90,000 77,000 Total Liabilities & Equity 265.000 249,000 1. Net Working capital Current assets-current liabilities (2 pts) 2. Return on Equity (ROE) Net Income/Equity (2 pts) 3. Current Ratio Current Assets/ current liabilities 4. Asset turnover Sales/ average total assets (2 pts) (2 pts) 5. Inventory Turnover Cost of goods sold / Inventory at start of year (2 pts) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) BIUS Paragraph Arial 14px III ALM I