6 Do a financial Analysis of L&M Inc. for 2007. Does the firm's future look like they turned around? L&M Inc. IA 2005 2006 Current Quick Inv TO DSO FIXED Asset TO TOTAL Asset TO Debt Ratio X Interest Eam Profit Margin ROA ROE PE 2 1 5 45 2.5 1.4 .52 4.5 5 7 15 12 2.02 1.02 5.56 44.49 2.56 1.32 0.57 4.73 6.5% 8.7% 20.1% 16 1.99 0.97 6.00 41.95 2.61 1.41 0.52 5.55 6.6% 9.4% 19.796 15 ProForma 2007 2008 & 2009 1.42 2.1 0.66 1 8.19 9.1 70.42 46 2.67 2.5 1.22 1.3 0.64 55 1.20 6 0.4% 6.6% 0.5% 1.5% 20% 5 18 896 LIQUIDITY RATIOS Current Current Assets/Current Liabilities Quick Test Current Assets - Inventory/Current Liabilities ACTIVITY Inventory Turnover - Sales/Inventory DSO-AR/S/365 FATO S/FA TATO S/TA DEBT Debt-Total Liabilities/Total Assets INTE-EBIT/INT PROFITABILITY PM-NI/S Return on Assets - Net Income/Total Assets Return on Equity - Net Income/Equity