Balance Sheets 2015 2016 2017E Assets Cash Short-term investments Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets $ 9,000 48,600 351,200 715,200 $1,124,000 491,000 146,200 $ 344,800 $1,468,800 $ 7,282 20,000 632,160 1,287,360 $1,946,802 1,202,950 263,160 $ 939,790 $2,886,592 14,000 71,632 878,000 1,716, 480 $2,680,112 1,220,000 383,160 $ 836,840 $3,516,952 Liabilities and Equity Accounts payable Notes payable Accrual Total current liabilities Long-term debt Common stock (100,000 shares) Retained earnings Total equity Total liabilities and equity 2015 $ 145,600 200,000 136,000 $ 481,600 323,432 460,000 203,768 $ 663,768 $1,468,800 2016 $ 324,000 720,000 284,960 $1,328,960 1,000,000 460,000 97,632 $ 557,632 $2,886,592 2017E $ 359,800 300,000 380,000 $1,039,800 500,000 1,680,936 296,216 $1,977,152 $3,516,952 Note "Edenotes "estimated"; the 2017 data are forecasts. Income Statements Sales Cost of goods sold except depr. Depreciation and amortization Other expenses Total operating costs EBIT Interest expense Pre-tax earnings Taxes (40%) Net income 2015 $3,432,000 2,864,000 18,900 340,000 $3,222,900 $ 209,100 62,500 $ 146,600 58,640 87,960 2016 $5,834,400 4,980,000 116,960 720,000 $5,816,960 $ 17,440 176,000 ($ 158,560) (63,424) ($ 95,136) 2017E $7,035,600 5,800,000 120,000 612,960 P. $6,532,960 $ 502,640 80,000 $ 422,640 169,056 $ 253,584 Note: "E" denotes estimated"; the 2017 data are forecasts. Other Data Stock price Shares outstanding EPS DPS Tax rate Book value per share Lease payments Note: "E" denotes estimated"; the 20 2015 $8.50 100,000 $0.880 $0.220 40% $6.638 $40,000 data are forecasts. 2016 $6.00 100,000 $0.951 $0.110 40% $5.576 $40,000 2017E $12.17 250,000 $1.014 $0.220 40% $7.909 $40,000 Ratio Analysis 2017E Current Quick Inventory turnover Days sales outstanding Fixed assets turnover Total assets turnover Debt ratio Liabilities-to-assets ratio TIE EBITDA coverage Profit margin Basic earning power ROA ROE Price/Earnings (P/E) Price/Cash flow Market/Book Note: "E" denotes "estimated" 2015 2.3 0.8 4.0 37.3 10.0 2.3 35.6% 54.8% 3.3 2.6 2.6% 14.2% 6.0% 13.3% 9.7 2016 1.5 0.5 4.0 39.6 6.2 2.0 59.6% 80.7% 0.1 0.8 -1.6% 0.6% -3.3% -17.1% -6.3 27.5 1.1 Industry Average 2.7 1.0 6.1 32.0 7.0 2.5 32.0% 50.0% 6.2 8.0 3.6% 17.8% 9.0% 17.9% 16.2 7.6 2.9 8.0 1.3 a. Calculate and discuss the importance of each of the ratios. Remember to show ALL your work and steps when calculating each of the ratios on the table above for 2017E. Compare and discuss them to the company's historical trend and also the industry averages. Remember to include suggestions of improvement if needed. Be specific with this part of the problem like discussing what the ratios numbers mean for this company. DISCUSS these with your opinions on the company