Cash	$ 1,500.00
Marketable Securities	$ 2,500.00
Accounts Receivable	$ 15,000.00
Inventory	$ 33,000.00
Total Current Assets	$ 52,000.00
Fixed Assets (net)	$ 35,000.00
Total Assets	$ 87,000.00
Liabilities & Stockholders Equity
Accounts Payable	$ 15,000.00
Notes Payable	$ 12,500.00
Total Current liabilities	$ 25,000.00
Long-term Debt	$ 22,000.00
Total liabilities	$ 47,000.00
Common Stock	$ 5,000.00
Contributed Capital	$ 18,000.00
Retained Earnings	$ 17,000.00
Total Stockholders equity	$ 40,000.00
Total liabilities & Stockholders equity	$ 87,000.00
Sales	$ 130,000.00
Cost of Sale	$ 103,000.00
Gross Margins	$ 27,000.00
Operating Expenses	$ 16,000.00
	$ 11,000.00
Earnings before interest and taxes
Interest Expenses	$ 3,000.00
Earnings before taxes	$ 8,000.00
Income tax	$ 3,000.00
Earnings after taxes	$ 5,000.00

Part II (20% of grade): A competitor of ACME has for the same time period reported the following three ratios:

Current ratio 1.52 Long-term debt to equity .25 or 25% Net profit margin .08 or 8%

Given these three ratios only which company is performing better on each ratio? Also overall who would you say has the best financial performance and position. Support your answer.

Competitor	Acme
1.52	2.08
0.25	0.55
0.08	0.04