2) Assume you are a potential investor, Discuss whether you would invest into Marner Corporation or not based on the financial analysis answer above.

Marner COMPANY Comparative Balance Sheet December 31, 2012 Assets Cash......... Temporary investments.. Accounts receivable (net).. Inventory..... Property, plant and equipment (net). Total assets..... 2012 25,000 15,000 50,000 150,000 160,000 $400,000 2011 $ 40,000 60,000 30,000 170,000 200,000 $500,000 Liabilities and shareholders' equity. Accounts payable. Short-term notes payable. Bonds payable.... Common shares... Retained earnings. Total liabilities and shareholders' equity.. $ 20,000 40,000 80,000 170,000 90,000 $400,000 $ 30,000 90,000 160,000 145,000 75,000 $500,000 Marner COMPANY Income Statement For the Year Ended December 31, 2012 $360,000 184,000 176,000 Revenue Net sales Cost of goods sold Gross profit Expenses Interest expense Selling expenses Administrative expenses Total expenses Income before income taxes Income tax expense $24,000 30,000 20,000 74,000 102,000 30,000 Net income $ 72,000 Additional information: a. b. Cash dividends of $36,000 were declared and paid in 2012. Number of common shares issued is 125,000 shares. Market value of common shares on December 31, 2012, was $18 per share. c. Instructions Using the financial statements and additional information, calculate the following ratios for Marner Company for 2012. (20 marks) Computations 1. Current ratio 2. Earnings per share 3. Price-earnings ratio 4. Quick ratio 5. Profit margin 6. Dividend Yield 7. Return on assets 8. Working Capital 9. Debt Ratio 10. Equity Ratio