2.4 The balance sheet that follows summarizes the financial conditions for Flex, Inc., an electronic outsourcing contractor, for fiscal-year 2005. Unlike Nano Network Corporation in Problem 2.3, Flex has reported a profit for several years running. Compute the various financial ratios and interpret the firm's financial health dur- ing fiscal-year 2005. Aug. 2005 Aug. 2004 U.S. $ (000) U.S. $ (000) (12 mos.) (Year) Balance Sheet Summary Cash Securities Receivables Allowances Inventory Current assets Property and equipment, net Depreciation Total assets Current liabilities Bonds Preferred mandatory Preferred stock Common stock Other stockholders' equity Total liabilities and equity Income Statement Summary Total revenues Cost of sales Other expenses Loss provision Interest expense 1,325,637 362,769 1,123,901 5,580 1,080,083 3,994,084 1,186,885 533,311 4,834,696 1,113,186 922,653 0 0 271 2,792,820 4,834,696 225,228 83,576 674,193 -3.999 788,519 1,887,558 859,831 -411,792 2,410,568 840,834 385,519 0 0 117 1,181,209 2,410,568 8,391,4095,288,294 7,614,5894,749.988 335,808 237,063 2.143 2,254 36,479 24,759 (Continued) Aug. 2005 U.S. $ (000) (12 mos.) Aug. 2004 U.S. $ (000) (Year) 432,342 138,407 293,935 298,983 100,159 198,159 Income pretax Income tax Income continuing Discontinued Extraordinary Changes Net income EPS primary EPS diluted 0 293,935 $1.19 $1.13 198,159 $1.72 $1.65 (a) Debt ratio (b) Times-interest-earned ratio (c) Current ratio (d) Quick (acid-test) ratio (e) Inventory turnover ratio (1) Day's sales outstanding (g) Total assets tumover (h) Profit margin on sales (i) Retum on total assets () Retum on common equity (k) Price-to-eamings ratio (1) Book value per share