Answers: Ratio Formula (in words Calculation TIP: Inter Return on assets Net Income/Average Total Assets 0.104 Operating profit margin EBIT/Sales 0.103 Sales-to-assets ratio Total Sales/ Total assets at start Inventory turnover COGS/ Inventory at start 2.35 Debt-equity ratio Long term debt at end/Total Shareholder equity at end 90 Current ratio lotal current assets at the end/Total current liabilities at the end Quick ratio (Cash and Mkt Securities + Account receivable at the end)/Total current liabilities at the end 18 0 End of Year Start of Year Balance Sheet Assets Curr Cash and marketable securities 402 254 Accounts receivable 1,039 nventories 987 856 Other current assets 360 269 Total current assets 2,787 2.239 Fixed assets: Tangible fixed assets Property, plant, and equipment 2,394 2,11 Less accumulated depreciation 1,232 Net tangible fixed assets 1,043 881 Long-term investments 24 22 Other long-term assets 1,157 984 Total assets 5,011 4,126 Liabilities and Shareholders' Equity Current liabilities: Debt due for repayment 119 Accounts payable 1,581 1,440 Total current liabilities 1,699 1.501 Long-term debt 1,078 1,028 Other long-term liabilities 581 $398 Total liabilities 3,358 2,92 Total shareholders' equity 1,653 1,199 Total liabilities and shareholders' equity 5,011 4,126 Income Statement Net sales 7,911 Cost of goods sold 1,997 Selling, general, and administrative expenses 4,852 Depreciation 251 Earnings before interest and taxes (EBIT) 811 Interest expense 67 Taxable income 744 Tax 260 Minority interest 10 Net income 474 Dividends 107 Addition to retained earnings 367