Assets Beulah Company Balance Sheets December 31 2014 2013 Beulah Company Income Statement For the Years Ended December 31 Current assets 2014 Cash $ 21,000 $ 18,000 Net sales (all on account) $500,000 2013 $420,000 Short-term investments 18,000 15,000 Expenses Accounts receivable (net) 85,000 75,000 Cost of goods sold 315,000 254,000 Inventory 80,000 60,000 Selling and administrative 120,800 114,800 Total current assets 204,000 168,000 Interest expense 7,500 6,500 Income tax expense 20,000 15,000 Plant assets (net) 423,000 383,000 Total expenses 463,300 390,300 Total assets $627,000 $551,000 Net income $ 36,700 $ 29.700 Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable $122,000 $110,000 12,000 11,000 Total current liabilities Long-term liabilities Bonds payable Total iabilities Stockholders' equity Common stock ($5 par) Retained earnings 134,000 121,000 120,000 80,000 254,000 201,000 150,000 150,000 223,000 200,000 Total stockholders' equity 373,000 Total liabilities and stockholders' equity $627,000 350,000 $551,000 Additional data: The common stock recently sold at $19.50 per share. Analyzing Data: Ratio Analysis: Calculating KPI's (show all your work) Hint: For averages, use the AVG of the 2013 & 2014 numbers. Use the Balance Sheet and Income State to the left for the following calculations: 2. Define Profitability and describe what it indicates about an organization. a. Calculate Profit margin for 2014 and describe what the ratio indicates. b. Calculate Return on assets for 2014 and describe what the ratio indicates. 3. Define Solvency and describe what it indicates about an organization. a. Calculate Debt to total assets ratio for 2014 and describe what the ratio indicates. b. Calculate Times interest earned for 2014 and describe what the ratio indicates.