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Based upon the financial information provided below for Addison Service Company, please answer all of the questions that follow. Please explain (show your work) exactly

Based upon the financial information provided below for Addison Service Company, please answer all of the questions that follow. Please explain (show your work) exactly how you arrived at your answers to all of the questions.

The financial statements of Addison Service Company are given below:

Addison Service Company

Income Statement (2015)

Sales

$8,000,000

Cost of goods sold

5,260,000

Gross profit

2,740,000

Selling and administrative expenses

Depreciation

1,350,000

150,000

Operating profit

1,240,000

Interest expenses

140,000

Income before tax

1,100,000

Tax expense

440,000

Net income

$660,000

Balance Sheet

2015

2014

Cash

$200,000

$50,000

Accounts receivable

1,200,000

950,000

Inventory

1,840,000

1,500,000

Total current assets

3,240,000

2,500,000

Fixed assets

3,200,000

3,000,000

Total assets

$6,440,000

$5,500,000

Accounts payable

800,000

720,000

Bank loan

600,000

100,000

Total current liabilities

1,400,000

820,000

Bonds payable

900,000

1,000,000

Total liabilities

2,300,000

1,820,000

Common stock (130,000 shares)

300,000

300,000

Retained earnings

3,840,000

3,380,000

Total liabilities & equity

$6,440,000

$5,500,000

Note: The common shares are trading in the stock market for $40 each

1. The firm's current ratio for 2015 is _____.

2. The firm's quick ratio for 2015 is _____.

3. The cash ratio for 2015 is _____.

4. The firm's interest coverage ratio for 2015 is _____.

5. The firm's average collection period for 2015 is _____.

6. The firm's inventory turnover ratio for 2015 is _____.

7. The firm's asset turnover ratio for 2015 is _____.

8. The firms financial leverage ratio for 2015 is_______.

9. The firm's profit margin ratio for 2015 is _____ percent.

10. The firm's return on equity ratio for 2015 is _____.

11. The firms return on assets ratio for 2015 is _____.

12. The firm's P/E ratio for 2015 is _____.

13. The firm's market to book value ratio for 2015 is _____.

14. The firms price to sales ratio for 2015 is_____.

15. The firms P/E to growth (PEG) ratio for 2015 is_____.

(Analysts expect the firms EPS to grow at a 5% CAGR for the next five years.

16. The firms Enterprise value (EV)/EBITDA ratio for 2015 is _____.

17. Calculate the firms return on equity (ROE) using the DuPont identity.

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