2015	2014	2013
Cash flows from operating activities
Net income	$624,850	$422,777	$255,593
Adjustments to reconcile net income to net cash
from operating activities:
Depreciation of property, plant, and equipment	46,415	46,578	41,538
Increase in accounts receivable	-360,453	-104,611	46,524
Increase in inventories	-1,167,949	-895,169	-562,215
Increase in prepaid expenses and deposits	-4,326	-1,706	2,347
Increase in accounts payable	347,584	296,673	223,827
Increase in accrued liabilities	40,797	5,753	7,923
Increase in federal income taxes payable	-10,706	6,265	7,851
Increase in note payable -- bank	850,000	250,000	200,000
Net cash provided by operating activities	366,212	26,560	223,388
Cash flows from financing activities
Repayment of long-term debt	-5,642	-5,642	-5,642
Dividends	-100,000	-100,000	-100,000
Net cash used in financing activities	-105,642	-105,642	-105,642
Cash flows from investing activities
Acquisition of long-term assets	-30,452	-31,287	-29,835
Net increase (decrease) in cash	230,118	-110,369	87,911
Cash at beginning of year	1,089,978	1,200,347	1,112,436
Cash at end of year	$1,320,096	$1,089,978	$1,200,347
The accompanying notes are an integral part of these financial statements

OCEANVIEW MARINE COMPANY

Statement of Income and Retained Earnings

December 31, 2015

PBC

2015

2014

2013

Sales

$26,456,647

$22,889,060

$20,950,521

Sales returns and allowances

37,557

27,740

28,753

Net sales

26,419,090

22,861,320

20,921,768

Cost of sales

19,133,299

16,530,114

15,176,410

Gross profit

7,285,791

6,331,206

5,745,358

EXPENSES

Accounting and auditing

48,253

46,750

44,610

Advertising

28,624

27,947

24,654

Depreciation

46,415

46,578

41,538

Bad debt expense

148,252

162,344

147,629

Business publications

1,231

872

115

Cleaning services

15,817

12,809

11,620

Fuel

64,161

53,566

41,593

Garbage collection

4,870

4,674

5,650

Insurance

16,415

16,303

16,144

Interest

427,362

364,312

356,829

Legal

69,752

29,914

22,654

Licensing and certification fees

33,580

27,142

24,148

Linen service

3,044

1,939

2,393

Medical benefits

4,178

4,624

4,287

Miscellaneous

47,739

16,631

25,430

Office supplies

26,390

23,289

21,462

Payroll benefits

569,110

461,214

430,688

Pension expense

40,770

37,263

18,900

Postage and courier

8,623

20,962

22,511

Property taxes

3,978

27,947

26,144

Rent

158,526

120,000

112,846

Repairs and maintenance

51,316

26,439

26,519

Salaries and wages

4,310,281

3,970,092

3,703,580

Security

96,980

100,098

93,800

Telephone

5,707

7,092

8,611

Travel and entertainment

21,633

16,303

14,952

Utilities

63,329

41,919

40,827

Total Expenses

6,316,336

5,669,023

5,290,134

Net income before income tax

969,455

662,183

455,224

Income tax expense

344,605

239,406

199,631

NET INCOME

624,850

422,777

255,593

Retained earnings at beginning of year

6,518,413

6,195,636

6,040,043

Less: Dividends

100,000

100,000

100,000

Retained earnings at end of year

$7,043,263

$6,518,413

$6,195,636

The accompanying notes are an integral part of these financial statements

OCEANVIEW MARINE COMPANY

Balance Sheet

December 31, 2015

PBC

ASSETS

2015

2014

2013

Current Assets

Cash

$1,320,096

$1,089,978

$1,200,347

Accounts receivable: net (Notes 2 and 5)

1,646,046

1,285,593

1,180,982

Inventories (Notes 1(a), 3, and 5)

13,524,349

12,356,400

11,461,231

Prepaid expenses

17,720

15,826

15,275

Deposits

7,916

5,484

4,329

Total Current Assets

16,516,127

14,753,281

13,862,164

Property, Plant, and Equipment (Notes 1(b) and 4)

At cost, less accumulated depreciation

596,517

612,480

627,771

TOTAL ASSETS

$17,112,644

$15,365,761

$14,489,935

LIABILITIES

Current Liabilities

Note payable -- Bank (Note 5)

$5,100,000

$4,250,000

$4,000,000

Accounts payable

1,750,831

1,403,247

1,106,574

Accrued liabilities

257,800

217,003

211,250

Federal income taxes payable

35,284

45,990

39,725

Current portion of long-term debt (Note 6)

5,642

5,642

5,642

Total Current Liabilities

7,149,557

5,921,882

5,363,191

Long-term Liabilities

Long-term debt (Note 6)

409,824

415,466

421,108

TOTAL LIABILITIES

7,559,381

6,337,348

5,784,299

STOCKHOLDERS EQUITY

Common stock (Note 7)

10,000

10,000

10,000

Additional paid-in capital

2,500,000

2,500,000

2,500,000

Retained earnings

7,043,263

6,518,413

6,195,636

Total Stockholders Equity

9,553,263

9,028,413

8,705,636

TOTAL LIABILITIES AND

STOCKHOLDERS EQUITY

$17,112,644

$15,365,761

$14,489,935

The accompanying notes are an integral part of these financial statements

	Oceanview Marine Company
	Ratio Analysis
	December 31, 2015
	Unadjusted			PERCENT	INDUSTRY
LIQUIDITY RATIOS:	12/31/2015	12/31/2014	CHANGE	CHANGE	AVERAGE
Current ratio
current assets / current liabilities	2.31	2.49	-0.18	-7.23%	1.53
Quick ratio
(current assets inventory) / current liabilities	0.42	0.40	0.02	5.00%	0.43
Sales / Receivables
net sales / net ending receivables	16.05	17.78	-1.73	-9.73%	20.29
Number of days sales in A/R
net ending receivables / (net sales / 365)	?	?	?	?	17.99
Inventory turnover
cost of sales / average inventory	?	?	?	?	1.41
PROFITABILITY/PERFORMANCE RATIOS:
Gross profit margin (%)
gross profit / net sales	?	?	?	?	23.83%
Income before taxes / Owners equity
net income before taxes / total owners equity	?	?	?	?	0.06
Income before taxes / Total assets
net income before taxes / total assets	0.06	0.04	0.02	50.00%	0.04
Sales / Long-term assets
net sales / net long-term assets	44.29	37.33	6.96	18.64%	19.07
Sales / Total assets
net sales / total assets	1.54	1.49	0.05	3.36%	1.32
Sales / Working capital
net sales / (current assets current liabilities)	2.82	2.59	0.23	8.88%	2.18
SOLVENCY RATIOS:
Owners Equity / Total assets
total stockholders equity / total assets	0.56	0.59	-0.03	-5.08%	0.31
Long-term assets / Owners equity
net long-term assets / total stockholders equity	0.06	0.07	-0.01	-14.29%	0.47
Current liabilities / Owners equity
current liabilities / total stockholders equity	?	?	?	?	1.13
Total Liabilities / Owners equity
total liabilities / total stockholders equity	?	?	?	?	2.03
Complete the workpaper by calculating the remaining 2015 and 2014 values in each ratio cateogory, including the change and percent chang for each of the ratios. Round all ratios to two decimal places.