Assume the following asset and liability values represent the average values over the year. Also, assume all sales are on credit.

Account

Cash $125,000

Accounts Receivable $175,000

Inventory $125,000

Property, Plant & Equipment $200,000

Current Liabilities $325,000

Long-term Liabilities $275,000

Stockholders Equity $25,000

Total Sales Revenue $800,000

Total Expense $600,000 (includes $250,000 COGS)

Outstanding Shares 100,000

Price per Share $50/shr

How is Vertical Analysis calculated and what does it communicate?

What is the companys AR Turnover?

Inventory Turnover?

Days in Inventory?

What is the companys profit margin?

What is the companys Return on Assets?

Return on EQ?

What is another way to calculate ROE?

What is the stocks P/E ratio?

What is the companys Debt Ratio?