Balance sheet

December 31

Assets 2007 2006

Cash $25,000 $40,000

Short term investments 15,000 60,000

Accounts receivable 50,000 30,000

Inventory 50,000 70,000

Property, plant and equipment (net) 160,000 200,000

Total assets $300,000 $400,000

Liabilities and stockholders equity

Accounts payable $20,000 $30,000

Short term notes payable 40,000 90,000

Bonds payable 80,000 160,000

Common stock 60,000 45,000

Retained earnings 100,000 75,000

Total liabilities and stockholders equity $300,000 $400,000

Income statement (for the year ended December 31, 2007)

Net sales $360,000

Cost of goods sold 184,000

Gross profit 176,000

Expenses

Selling expenses 30,000

Administrative expenses 59,000

Total expenses 89,000

Income before interest expense and taxes 87,000

Interest expense 12,000

Income before income taxes 75,000

Income tax expense 30,000

Net income $45,000

Additional information

1. 120,000 shares were outstanding in 2007:90,000 shares were outstanding in 2006
2. Market value of common stock on December 31, 2007 was $12 per share.

1. Working capital
2. Current Ratio
3. Quick ratio
4. Cash ratio