2014 2013 2012 2011 2010 2009

Asset Turnover 3351/1249=2.68

Cash Coverage (-9+159)/37=4.05

Cash Ratio 14/680=.02

Quick Ratio 14=176/680=.28

Average Collection Period 194/9.18=21.13 or 21

Current Ratio 669/680=.98

Average Days in Inventory 203/5.45=37.25 or 37%

Long Term Debt-Equity Ratio 236/912=.26

Inventory Turnover 1990/203=9.80

Net Working Capital/Total Assets (669-680)/1592=-.01

Operating Profit Margin -24.95/ HELP?

Payout Ratio 0/-49=0

ROA (Return on Assets) -25/1249= -.02 (0.020)

ROE (Return on Equity) -49/725= -.07 (0.070)

Times Interest Earned -9/37= -.24 (0.240)

Total Debt Ratio 680/1592=.43

Paste your Memo in the Space Provided.

Selected Financial Data (all items in Millions of dollars except per share data) 2014 2013 2012 2011 2010 2009

Sales 3,351 3,314 2,845 2,796 2,493 2,160

EBIT -9 312 256 243 212 156

Interest 37 63 65 58 48 46

Taxes 3 60 46 43 39 34

Net Profit (or Net Income) -49 189 145 142 125 76

Earnings Per Share -0.15 0.55 0.44 0.42 0.37 0.25

Current Assets 669 469 491 435 392 423

Net fixed Assets 923 780 753 680 610 536

Total Assets 1,592 1,249 1,244 1,115 1,002 959

Current Liabilities 680 365 348 302 276 320

Long Term Debt 236 159 297 311 319 315

Shareholders' Equity 676 725 599 502 407 324

Stores 240 221 211 184 170 157

Employees 13,057 11,835 9,810 9,790 9,075 7,825

INCOME STATEMENT 2014

Net Sales 3,351

Cost of Goods Sold 1,990

Selling, General, & Administrative Expenses 1,211

Depreciation Expense 159

EBIT (Earnings Before Interest and Taxes) -9

Net Interest Expense 37

Taxable income -46

Income taxes 3

Net Income -49

Allocation of Net Income Addition to Retained Earnings -49

Dividends 0 BALANCE SHEET

Assets 2014 2013

Current Assets Cash & Securities 14 72

Receivables 176 194

Inventories 479 203

Total Current Assets 669 469

Fixed Assets Property, Plant & Equipment (net of depreciation) 1,077 910

Less Accumulated Depreciation 154 130

Net Fixed Assets 923 780

Total Assets 1,592 1,249

Liabilities and Shareholders' Equity Current Liabilities Debt due for repayment 484 222

Accounts Payable 94 58

Other Current Liabilities 102 85

Total Current Liabilities 680 365

Long-term Debt 236 159

Stockholders' Equity Common Stock and other Paid-In Capital 155 155

Retained Earnings 521 570

Total Stockholders Equity 676 725

Total Liabilities and Stockholders Equity 1,592 1,249

Prepare a memo, addressed to the Lending Committee of ABC Bank, where you explain what you uncovered in your analysis. Finish the memo with your group's recommendations on renewal of the $45 million note. Since the committee reviews many such renewal re quests, it is likely that they will not know much about the Hobby Horse Company, so make sure you properly summarize the issues as you understand them?