34. Using the financial statements of Jet Boat Ltd., calculate the 13 basic ratios found in this chapter. Comment briefly on the ratios that might be worth further investigation. Explain why. JET BOAT LTD. Balance Sheet December 31, 2015 Assets Current assets: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40,000 Marketable securities . . . . . . . . . . . . . . . . . . . . . . 85,000 Accounts receivable (net) . . . . . . . . . . . . . . . . . . 100,000 Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375,000 Total current assets . . . . . . . . . . . . . . . . . . . . . 600,000 Net plant and equipment . . . . . . . . . . . . . . . . . . . 600,000 Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,200,000 Liabilities and Shareholders Equity Current liabilities: Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 Bank loans ................................ 125,000 Accrued expenses . . . . . . . . . . . . . . . . . . . . . . . . 25,000 Total current liabilities . . . . . . . . . . . . . . . . . . . 250,000 Long-term liabilities: Bonds payable* . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 750,000 Shareholders equity: Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 350,000 Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . 100,000 Total shareholders equity . . . . . . . . . . . . . . . . 450,000 Total liabilities and shareholders equity . . . . . . . . $1,200,000 *Sinking fund provision of $50,000 a year. JET BOAT LTD. Income Statement Year ending December 31, 2015 Sales (on credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,900,000 Less: cost of goods sold . . . . . . . . . . . . . . . . . . . . . 2,465,000 Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435,000 Selling and administrative expenses . . . . . . . . . . . 250,000 Operating profit (EBIT) . . . . . . . . . . . . . . . . . . . . . . . 185,000 Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,000 Earnings before taxes (EBT) . . . . . . . . . . . . . . . . . . 91,000 Taxes (20%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,200 Earnings after taxes (EAT) . . . . . . . . . . . . . . . . . . . . $ 72,800