ABC CORPORATION

Balance Sheet

Year Ended December 31 (in $ millions)

Assets	2006	2005		Liabilities & Stockowners Equity	2006	2005
Current Assets				Current Liabilities
Cash	22.2	19.5		Accounts Payable	39.2	24.5
Accounts Receivables	18.5	13.2		Notes Payable / Short-Term Debt	4.5	3.2
Inventories	27.2	14.3		Current Maturities of Long-Term Debt	13.3	12.3
Other Current Assets	2.0	1.0		Other Current Liabilities	8.0	4.0
Total Current Assets	69.9	48.0		Total Current Liabilities	65.0	45.0
Long Term Assets				Long-Term Liabilities
Land	22.2	20.7		Long-Term Debt	98.9	56.3
Buildings	46.5	30.5		Capital Lease Obligations	---	---
Equipment	39.7	33.2		Total Debt	98.9	56.3
Less Accumulated Depreciation	(18.7)	(17.5)		Deferred Taxes	15.6	7.4
Net Property, Plant, and Equipment	89.7	66.9		Other Long-Term Liabilities	----	----
Goodwill	22.0	---		Total Long Term Liabilities	114.5	63.7
Other Long-Term Assets	41.0	14.0		Total Liabilities	179.5	108.7
Total Long Term Assets	152.7	80.9		Stockholders Equity	43.1	20.2
Total Assets	222.6	128.9		Total Liabilities and Stockholders Equity	222.6	128.9

ABC Corporation

Income Statement

Year Ended December 31 ($ in millions)

	2006	2005
Total Sales	198.8	176.1
Cost of Sales	(153.4)	(147.3)
Gross Profit	35.4	28.8
Selling, General and Administration Expenses	(13.5)	(13.0)
Research and Development	(9.2)	(7.6)
Depreciation and Amortization	(6.2)	(1.1)
Operating Income	16.5	7.1
Other Income	----	----
Earnings Before Interest and Tax (EBIT)	16.5	7.1
Interest Income (or Expense)	(7.7)	(4.6)
Pretax Income	8.8	2.5
Taxes	(0.7)	(0.6)
Net Income	8.1	1.9
Earnings per share	$0.556	$0.528
Diluted Earnings Per Share	$0.526	$0.500

ABC Corporation has 5.8 million shares outstanding and shares are trading for $20

Calculate the following for 2006:

Quick Ratio

Current Ratio

Market to Book Ratio

Debt to Equity Ratio

Enterprise Value

EPS

Operating Margin

Net Profit Margin

Return on Equity

P/E Ratio

Inventory Turnover

Days of Sales Outstanding

ROA

ROE

Did the tax rate increase from 2005 to 2006? If so, by how much?