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5/31/97 For the fiscal year ended Current ratio 5/31/99 1.79 5731/98 1.74 (P/L/S) 1.70 (P/L/S) Debt ratio 0.491 0.492 0.488 (P/L/S) Return on sales 0.15

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5/31/97 For the fiscal year ended Current ratio 5/31/99 1.79 5731/98 1.74 (P/L/S) 1.70 (P/L/S) Debt ratio 0.491 0.492 0.488 (P/L/S) Return on sales 0.15 0.11 0.14 0.18 0.14 0.18 (P/L/S) Return on assets Source: Disclosure, Ina, Compact D/SEC, 2000. 1. In the left-hand margin above, circle whether the ratio measures (P)rofitability, short-term (L)iquidity - the ability to pay current debt, or long-term (S) olvency -- the ability to pay long-term debt. 2. For each short-term liquidity ratio above, circle the ratio indicating the greatest ability to pay current liabilities for the three years of information presented. This company appears to have / not have) the ability to pay 'current debt. 3. For For each long-term solvency ratio above, circle the ratio indicating the least amount of debt financing for the three years of information presented. This company relies more heavily on (debt / equity) to finance assets. 4. For each profitability ratio above, circle the ratio indicating the greatest profitability over the three years of information presented. The profitability of this company appears to be (strong / weak). 5. Refer to all of the ratio information presented above. This company appears to be (strong / weak). Explain your

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