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Balance Sheet Year ending Year ending 12/31/2005 12/31/2006 Assets ($ in thousands of dollars) Current Assets Cash $ 2,081 $ 2,540 Marketable Securities 1,625 1,800

Balance Sheet
Year ending Year ending
12/31/2005 12/31/2006
Assets ($ in thousands of dollars)
Current Assets
Cash $ 2,081 $ 2,540
Marketable Securities 1,625 1,800
Accounts Receivable 16,850 18,320
Inventories 26,470 27,530
Total Current Assets 47,026 50,190
Long-Term Assets
Property & Equipment at cost 39,500 43,100
Less Accumulated Depreciation 9,500 11,400
Net Property & Equipment 30,000 31,700
Total Long-Term Assets 30,000 31,700
TOTAL ASSETS $ 77,026 $ 81,890
Liabilities
Current Liabilities
Accounts Payable $ 8,340 $ 9,721
Notes Payable @ 10% 5,635 8,500
Taxes Payable 3,150 3,200
Other Current Liabilities 1,750 2,102
Current Portion of Longterm Debt 2,000 2,000
Total Current Liabilities 20,875 25,523
Long-Term Liabilities
Mortgage Bonds @ 9.58% 24,000 22,000
Total Long-Term Liabilities 24,000 22,000
TOTAL LIABILITIES $ 44,875 $ 47,523
Equity
Common Stock $ 13,000 $ 13,000
Paid in Capital in excess of par value 10,000 10,000
Retained Earnings 9,151 11,367
TOTAL EQUITY $ 32,151 $ 34,367
Income Statement
Year ending
12/31/2006
Revenues ($ in thousands of dollars)
Gross Sales Revenues $ 116,900
Allowance for Sales Returned 4,140
Net Sales Revenues 112,760
TOTAL SALES 112,760
Expenses
Cost of Goods Sold 85,300
Gross Profits 27,460
Operating Expenses:
Selling & Marketing 6,540
General Administrative 9,400
Total Operating Expenses 15,940
Operating Income 11,520
Interest Expenses:
Interest on Loans 850
Interest on Mortgage Bonds 2,310
Total Interest Expenses 3,160
Earnings Before Taxes 8,360
Federal & State Taxes @ 40% 3,344
NET INCOME 5,016

Requirements :

From the Balance sheet and income statement provided above.

a. Calculate 5 ratios ?

b. Interpret your answers in section a ?

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