Bayside Inc. 2005 Income Statement ($ in thousands) Net sales $5,680 Less: Cost of goods sold 4,060 Less: Depreciation 420 Earnings before interest and taxes 1,200 Less: Interest paid 30 Taxable Income $1,170 Less: Taxes 410 Net income $ 760 Bayside, Inc. 2004 and 2005 Balance Sheets ($ in thousands) 2004 2005 2004 2005 Cash $ 70 $ 180 Accounts payable $1,350 $1,170 Accounts rec. 980 840 Long-term debt 720 500 Inventory 1,560 1,990 Common stock 3,200 3,500 Total $2,610 $3,010 Retained earnings 940 1,200 Net fixed assets 3,600 3,360 Total assets $6,210 $6,370 Total liabilities & equity $6,210 $6,370 Calculate the following: for 2005 only (You will show your work and put it in the drop box). Additional Information at the end of 2005: Fair Market Value of the Stock $190 per share Number of Common Shares Outstanding 100,000 Dividends paid during 2005 - $4 per share

1) Calculate the Current Ratio for 200 ?

2)The ratio appears to show that the company has a healthy current ratio.

Is this statement true or false.?

3)What is the Quick Ratio for this company for 2005?

4)Calculate the Inventory Turnover in days for 2005.?

5)This would be a good Inventory Turnover Ratio if this company were selling fresh produce? true or false ?

6)Calculate the Average Days Sales for Collecting Receivables.?

7)If this companies terms were Net 15, we would be very happy with the days sales in receivable number? yes or no ?

8)Calculate the Debt to Equity Ratio. ?

9)The ratio reflects that the company has used more debt than equity to finance the growth of the company. ?

10)Calculate the Profit Margin for the company.?

11) Explain this Profit Margin Percentage. What does it mean?

12) Calculate the Earnings Per Share for the company. (Net Income/Oustanding Shares) ?

13)Calculate the Price to Earnings Ratio. ?

14)If the industry Price to Earnings ratio is at 15, what could account for the difference from the industry average?