Calculate the firm's 2015 financial ratios for liquidity, activity (asset management), leverage (debt), and profitability.

Analyze the firm's performance from both time-series and cross-sectional points of view using the key financial ratios provided in the template.

Calculate the operating cash flow based on your review of the firm's income statement.

How does operating cash flow (OCF) compare to free cash flow (FCF)?

Why is the free cash flow so meaningful to management and investors?

Calculate the sustainable growth rate based on your calculations of return on equity (ROE) and assuming a 60 percent dividend-payout ratio. How can a company increase its sustainable growth rate?

Evaluate the firm's overall financial condition and performance based on your analysis and then address these questions:

Is the company improving or deteriorating over this three-year period?

How does your ratio analysis justify your interpretation?

Problems 1 and 2 BALANCE SHEET Assets Cash and Equivalents Accounts Receivable Inventory Total Current Assets Gross Fixed Assets Less Accumulated Depreciation Net Fixed Assets Total Assets 2015 INSTRUCTIONS: Analyze the firm's performance from both time-series and cross-sectional points the key financial ratios provided. $237,500.00 $592,500.00 $ 607,500.00 $1,437,500.00 PROVIDE YOUR WRITTEN ANALYSIS IN THIS COLUMN. $ 1,250,000.00 187,500.00 $1,062,000.00 $2,500,000.00 Liabilities and Equit Current Liabilities Accounts Payable Notes Payable Accruals Total Current Liabilities Long Term Debt Total Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholders Equity Total Liabilities & Equity $222,500.00 $422,500.00 $217,500.00 $862,500.00 $470,000.00 $ 1,332,500.00 $ 637,500.00 $530,000.00 $1,167,500.00 $ 2,500,000.00