4 Balance Sheet Data Income Statement Data Cash $1,000,000 Accounts payable $1,200,000 Sales $20,000,000 Accounts receivable 2,000,000 Accruals 400,000 Cost of goods sold 12,000,000 Inventory 3,000,000 Notes payable 1,600,000 Gross profit 8,000,000 Current assets 6,000,000 Current liabilities 3,200,000 Operating expenses 5,000,000 Long-term debt 4,500,000 EBIT 3,000,000 Total liabilities 7,700,000 Interest expense 732,000 Common stock 1,575,000 EBT 2,268,000 567,000 Net fixed assets 8,000,000 Taxes Retained earnings 4,725,000 Total equity 6,300,000 Total debt and equity $14,000,000 Net income $1,701,000 Total assets $14,000,000 Ratios Calculation Value Profitability ratios Numerator Denominator Gross profit margin (%) Operating profit margin (%) Net profit margin (%) Return on equity (%) III HI 11 llll Asset management ratio Total assets turnover Financial ratios Equity multiplier