Calculate Gross Profit Margin, Operating Expense Margin, and Profit Margin for 2009 - 2013.
b) Calculate A/R turnover, Inventory turnover, A/P turnover, Cash conversion cycle, and PPE turnover for 2009-2013.
Are the company's struggles related to profitability or productivity?
2 a) Calculate the financial leverage ratio and the liabilities-to-equity ratio for 2009-2013.
Interpret the trends. Examine the balance sheet, what is causing the change?
3 a)Calculate the current and quick ratios for 2009-2013.
3 b)Do you think the company will be able to pay off its upcoming obligations?
4) Assuming they can get their debt issue under control, what changes could the company try to make
to become a healthy, profitable business?

(Amounts and shares in thousands, except per share amounts) 2013 $ $ Years Ended December 31, 2012 $ 833.041 $ 617.310 S 313,058 280,027 320.885 327,383 241.883 227,447 100,057 07.327 1.540 1.647 (20.296) 902 30 280 41,560 120 2011 547.336 252.436 294,900 200.841 104.065 4.207 (23.293) 33, 107 1.670 2010 532.999 263.080 270.000 218.196 103, 107 2009 558.775 238,883 310,012 190.518 93,630 3.343 24.415 22,027 (2.920) (50.053) 23.752 (608) 903 Net sales Cost of sales Gross profit Selling expenses General and administrative expenses Retail store impairment (Loss) income from operations Interestepense Foreign currency transaction loss Unrealized loss (gain) on change in fair value of warrants and purchase rights Loss (gain) on extinguishment of debt Other expense (income) Loss before income to Income tax provision Netloss Basic and diluted loss per share Weighted average basic and diluted shares outstanding Net loss (from above) Other comprehensive (loss) income item Foreign currency translation, net of tax Other comprehensive (loss) income, net of tax Comprehensive loss 4, 120 (11.588) 204 30 3.713 32.101 131 (104.527) 1.771 $ (100.298) S $ (0.98) S (33.450) 3,813 (37.272) S (0.35) (23,407) 3.114 (103) (37.593) 1.721 (30.314) 5 (0.42) 3 174. 151) 12.164 (86.315) S (121) S (1.21) 5 71.620 (86.315) S (220) 4.928 3,810 1,112 0.02 0.01 71,020 1,112 110,320 $ (106,298) S 105,980 (37.272) S 92.599 (39,314) S 020 (1,681) (1.581) $ (107,870) 3 031 831 3 ,641) 3 (188) (188) (30.502) 3 (1.085) (1.005) 87.400) $ 820 1,732 Consolidated Statement of Operations and Comprehensive Loss, 2009-14 2013 2012 2011 2010 2009 2008 8,676 $ 12,350 $ 10,293 $ 7,656 $ 9,045 $ 11,365 20,701 22.962 20.939 16,685 16.907 16,439 3.733 15,636 9 589 7,6319,401 9904 5369 169,378 174 229 183,764 178,052 141,235 145 154 306 530 5,955 4.114 4.494 604 599 494 145 626 4,627 3.935 215,296 224,390 230,730 216,537 186,303 185,869 69,303 67,778 67,438 85,400 103,310 112.408 2,426 1.261 1,529 1 ,695 12,033 10.137 46,727 34,783 25,024 24.315 25.933 25.195 333,752 5328 212 5324 721 5327.950 5327 579 $333 600 $ $ 3.993 5 . 5 1.921 5 3,325 $ 3.741 5 2.413 (Amounts and shares a thousands, except per share amounts) ASSETS CURRENT ASSETS Cash Trade accounts receivable Restricted can Prepaid expenses and other current assets eventies, bet Income taxes recetable and prepaid income taxes Deferred come out, of valuation allowance Total current assets Property and equipment, et Duffered as Other 10, TOTAL ASSETS LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITY CURRENT LIABILITIES Cash overdratt Revoking credit facilities and current portion of long-term debt Accounts payable Accred capesses and other current labas Fair vabe of wartaat listy Income taxes payable Deferred come tax Baby, current Current portion of capital base obligations Total current listes LONG-TERM DEBT,Det of amortized discount of 55,779 and $27,929 at December 31, 2013 and 2012, respectively Subordinated notes payble to related party Capital lease obligations, set of current portion Deferred tax aby Defected ret, at of current portios Other long-term abdities Total Long Term Lisbites TOTAL LIABILITIES STOCKHOLDERS (DEFICIT) EQUITY Shares outstanding at December 31, 2012 Additional paid in capital Accumulated other comprabakelse Accumulated defica Less: Treasury stock, 304 shares at cost TOTAL STOCKHOLDERS (DEFICIT) EQUITY TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT EQUITY 44,042 38,290 50,01$ 20.954 6.345 1 9,705 30,573 2.600 34.315 32,731 22 140 138,478 31.534 39,028 993 230 60,556 38.160 41 516 19.241 2137 296 1.703 161,609 552 30.375 33.920 43,725 9,633 2,445 150 1,181 343,350 1,241 1,700 161,989 560 214,151 1907 64.380 2616 102.300 97,142 213,468 5,453 110,012 2,544 536 18,225 11,435 249,167 411,156 262 20,706 10,695 144,319 306,128 1,726 96 22 231 12,046 133,241 276,591 444 4 611 542 260 24 924 7.994 3 8,775 252 926 65.997 67050 4,355 3,292 1,020 1.956 22,052 16 011 11.934 6,055 105,358 94,397 $170,238 5197 197 11 11 11 185.472 177,081 166,486 153,381 (4,306) (2.725) 3,356) 3.168) (256,424) (150,126) (112,354) 73,540) (2,157) 2,157) 2,157) 2,157) (07.404) 22,084 48,130 7 5,024 333,252 3328 212 3324 721 3327 950 150,449 131,252 2.083) (2.703) 19,012 17.900 (10,044) (10,044) 157,341 136,412 3327579 3333 609 $ Balance Sheet 2008-2013 (Amounts and shares in thousands, except per share amounts) 2013 $ $ Years Ended December 31, 2012 $ 833.041 $ 617.310 S 313,058 280,027 320.885 327,383 241.883 227,447 100,057 07.327 1.540 1.647 (20.296) 902 30 280 41,560 120 2011 547.336 252.436 294,900 200.841 104.065 4.207 (23.293) 33, 107 1.670 2010 532.999 263.080 270.000 218.196 103, 107 2009 558.775 238,883 310,012 190.518 93,630 3.343 24.415 22,027 (2.920) (50.053) 23.752 (608) 903 Net sales Cost of sales Gross profit Selling expenses General and administrative expenses Retail store impairment (Loss) income from operations Interestepense Foreign currency transaction loss Unrealized loss (gain) on change in fair value of warrants and purchase rights Loss (gain) on extinguishment of debt Other expense (income) Loss before income to Income tax provision Netloss Basic and diluted loss per share Weighted average basic and diluted shares outstanding Net loss (from above) Other comprehensive (loss) income item Foreign currency translation, net of tax Other comprehensive (loss) income, net of tax Comprehensive loss 4, 120 (11.588) 204 30 3.713 32.101 131 (104.527) 1.771 $ (100.298) S $ (0.98) S (33.450) 3,813 (37.272) S (0.35) (23,407) 3.114 (103) (37.593) 1.721 (30.314) 5 (0.42) 3 174. 151) 12.164 (86.315) S (121) S (1.21) 5 71.620 (86.315) S (220) 4.928 3,810 1,112 0.02 0.01 71,020 1,112 110,320 $ (106,298) S 105,980 (37.272) S 92.599 (39,314) S 020 (1,681) (1.581) $ (107,870) 3 031 831 3 ,641) 3 (188) (188) (30.502) 3 (1.085) (1.005) 87.400) $ 820 1,732 Consolidated Statement of Operations and Comprehensive Loss, 2009-14 2013 2012 2011 2010 2009 2008 8,676 $ 12,350 $ 10,293 $ 7,656 $ 9,045 $ 11,365 20,701 22.962 20.939 16,685 16.907 16,439 3.733 15,636 9 589 7,6319,401 9904 5369 169,378 174 229 183,764 178,052 141,235 145 154 306 530 5,955 4.114 4.494 604 599 494 145 626 4,627 3.935 215,296 224,390 230,730 216,537 186,303 185,869 69,303 67,778 67,438 85,400 103,310 112.408 2,426 1.261 1,529 1 ,695 12,033 10.137 46,727 34,783 25,024 24.315 25.933 25.195 333,752 5328 212 5324 721 5327.950 5327 579 $333 600 $ $ 3.993 5 . 5 1.921 5 3,325 $ 3.741 5 2.413 (Amounts and shares a thousands, except per share amounts) ASSETS CURRENT ASSETS Cash Trade accounts receivable Restricted can Prepaid expenses and other current assets eventies, bet Income taxes recetable and prepaid income taxes Deferred come out, of valuation allowance Total current assets Property and equipment, et Duffered as Other 10, TOTAL ASSETS LIABILITIES AND STOCKHOLDERS (DEFICIT) EQUITY CURRENT LIABILITIES Cash overdratt Revoking credit facilities and current portion of long-term debt Accounts payable Accred capesses and other current labas Fair vabe of wartaat listy Income taxes payable Deferred come tax Baby, current Current portion of capital base obligations Total current listes LONG-TERM DEBT,Det of amortized discount of 55,779 and $27,929 at December 31, 2013 and 2012, respectively Subordinated notes payble to related party Capital lease obligations, set of current portion Deferred tax aby Defected ret, at of current portios Other long-term abdities Total Long Term Lisbites TOTAL LIABILITIES STOCKHOLDERS (DEFICIT) EQUITY Shares outstanding at December 31, 2012 Additional paid in capital Accumulated other comprabakelse Accumulated defica Less: Treasury stock, 304 shares at cost TOTAL STOCKHOLDERS (DEFICIT) EQUITY TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT EQUITY 44,042 38,290 50,01$ 20.954 6.345 1 9,705 30,573 2.600 34.315 32,731 22 140 138,478 31.534 39,028 993 230 60,556 38.160 41 516 19.241 2137 296 1.703 161,609 552 30.375 33.920 43,725 9,633 2,445 150 1,181 343,350 1,241 1,700 161,989 560 214,151 1907 64.380 2616 102.300 97,142 213,468 5,453 110,012 2,544 536 18,225 11,435 249,167 411,156 262 20,706 10,695 144,319 306,128 1,726 96 22 231 12,046 133,241 276,591 444 4 611 542 260 24 924 7.994 3 8,775 252 926 65.997 67050 4,355 3,292 1,020 1.956 22,052 16 011 11.934 6,055 105,358 94,397 $170,238 5197 197 11 11 11 185.472 177,081 166,486 153,381 (4,306) (2.725) 3,356) 3.168) (256,424) (150,126) (112,354) 73,540) (2,157) 2,157) 2,157) 2,157) (07.404) 22,084 48,130 7 5,024 333,252 3328 212 3324 721 3327 950 150,449 131,252 2.083) (2.703) 19,012 17.900 (10,044) (10,044) 157,341 136,412 3327579 3333 609 $ Balance Sheet 2008-2013