1. Baker Corporation provided the following Statements for 2014-15

Balance Sheet 2015 2014

Assets $ $

Cash 40,000 70,000

Accounts Receivable 320,000 350,000

Inventory 460,000 320,000

Total Current Asset 820,000 740,000

Gross Fixed Assets 560,000 520,000

Accumulated Depreciation 180,000 150,000

Net Fixed Asset 380,000 370,000

Total Asset 1,200,000 1,110,000

Liabilities & Stockholders Equity

Current Liabilities

Accounts Payable 390,000 320,000

Notes Payable 110,000 90,000

Accrued Expense 20,000 20,000

Total Current Liabilities 520,000 430,000

Long Term Debt 320,000 350,000

Total Liabilities 840,000 780,000

Stockholders Equity

Common Stock at par 100,000 100,000

Share Premium Reserve 150,000 150,000

Retained Earnings 110,000 80,000

Total Liabilities & Stockholders Equity 1,200,000 1,110,000

Income Statement 2015

$

Sales 2,200,000

Cogs 1,420,000

Gross Profit 780,000

Operating Expenses 600,000

Operating Income (EBIT) 180,000

Interest 29,000

Earnings before Tax (EBT) 151,000

Tax (30%) 45,000

Earnings after Tax (Net Income) 106,000

Additional Information:

1. Purchased equipments paying $40,000 cash.
2. Annual depreciation expense was $30,000.
3. Paid cash dividend of $76,000.
4. No sale of fixed asset.

Required

1. Prepare a Cash Flow Statement for the year 2015. (12)
2. Calculate the following Ratios for the year 2015 and also indicate the

significance of each ratio (18)

Current Ratio, Quick Ratio, Accounts Receivable Turnover, Profit Margin, Asset

Turnover, ROA, Return on Common Stockholders Equity, Debt to Asset, Times

Interest Earned ratio.