Accounting Problem

Balance Sheet				Income Statement
	2018	2017
Cash	565,632	407,282			2018	2017
A/R	838,000	732,160		Sales	6,240,000	4,123,232
Inventories	916,000	837,360		COGS	4,312,000	2,873,000
Total Current Assets	2,319,632	1,976,802		SG&A	550,000	519,988
Gross Fixed Assets	1,697,160	1,302,950		EBITDA	1,378,000	730,244
Depreciation	480,120	463,160		Depr & Amort	116,960	115,000
Net Fixed Assets	1,217,040	839,790		EBIT	1,261,040	615,244
Total Assets	3,536,672	2,816,592		Interest Exp	70,008	142,000
				EBT	1,191,032	473,244
Accts Payable	675,800	549,160		Taxes (40%)	476,413	189,298
Notes Payable	601,696	536,808		Net Income	714,619	283,946
Accruals	558,000	414,600
Total Current Liabilities	1,835,496	1,500,568
Long Term Debt	1,010,000	823,432
Common Stock	460,000	460,000
Retained Earnings	231,176	32,592
Total Equity	691,176	492,592
Total Liab. & Equity	3,536,672	2,816,592

1. Please complete the table below:

Please complete the following table of ratios and comments on the progress of ABC Inc. On a ratio by ration basis, discuss the current business prospects at ABC Inc.

	2018	2017	Industry
Current Ratio			4x
Inventory Turnover Ratio			6x
Days Sales Outstanding			43
Debt Ratio			78%
Times Int. Earn			11x
Operating Margin			16%
Profit Margin			9%
ROA			18%
ROE			36%

2. What are the other major issues that need to be considered outside of the ratios?