2016 160,000 -96,000 64,000 INCOME STATEMENT Income Statement 2015 Sales/Revenue 125,000 Cost of Goods Sold -75,000 Gross Profit 50,000 Operating Expenses Fixed 21,000 Variable 12,500 Depreciation 4,500 Total operating expenses 38,000 Earnings Before Interest and Taxes 12,000 Interest Expense -3,000 Earnings Before Tax 9,000 Taxes -4,500 Net Income/Earnings After Tax 4,500 21,000 16,000 10,000 47,000 17,000 6,100 10,900 5,450 5,450 Instructions Based on preceding statements, calculate the following ratios for both 2015 and 2016. Use the industrial averages for analysis. Use the formulas given in the notes. Industry Average 1 Current Ratio 1.8 2 Quick Ratio 0.7 3 3 Inventory Turnover 2.5 4 Total Asset Turnover 1.14 5 Debt Ratio 58% Case Analysis - CUPAC BHD The statements for CUPAC BHD Malaysia are presented below: CUPAC BHD Malaysia Balance Sheet/Statement of Financial Position for December 31, 2015 and 2016 Balance Sheet 2015 2016 ASSETS Short term / Current Assets Cash 9,000 500 Accounts Receivable 12.500 16,000 Inventories 29,000 45,500 Total current assets 50,500 62,000 Land Long term/Fixed Assets 20,000 Building and Equipment 70,000 Less accumulated depreciation -28,000 Total fixed assets Total Assets 26,000 100,000 -38,000 62,000 112,500 88,000 150,000 10,500 17,000 27,500 22,000 47,000 69,000 LIABILITIES/DEBT Current Liabilities Accounts Payable Short-Term Bank Loans Total Current Liabilities/Debt Long-term Liabilities Long-Term Debt Total Liabilities or Total Debt SHAREHOLDERS' EQUITY Common Stock/shares Retained Earnings Total Shareholders' equity Total Debt and Equity 28,750 22,950 56,250 91,950 31,500 24,750 56,250 112,500 31,500 26,550 58,050 150,000