BaysideInc.

2005 Income Statement

($ in thousands)

Net sales$5,680

Less: Cost of goodssold4,060

Less:Depreciation420

Earnings before interest and taxes1,200

Less: Interestpaid30

TaxableIncome$1,170

Less:Taxes410

Netincome$760

Bayside, Inc.

2004 and 2005 Balance Sheets

($ in thousands)

2004200520042005

Cash$70$180Accountspayable$1,350$1,170

Accountsrec.980840Long-termdebt720500

Inventory1,5601,990Commonstock3,2003,500

Total$2,610$3,010Retained earnings9401,200

Net fixed assets3,6003,360

Totalassets$6,210$6,370Total liabilities &equity$6,210$6,370

Calculate the following: for2005 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

Calculate the Average Days Sales for Collecting Receivables.

Carry your answer two decimal points. 33.0899 would be entered as 33.09

Explain this Profit Margin Percentage. What does it mean?

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