Castillo Sugar Company

Comparative Balance Sheet

(Dollars in Thousands)

End of year Beginning Year

1.) Assets

Cash

$126,215

$20,944

Marketable securities

103,221

41,507

Accounts receivable .

17,621

9,852

Inventories

83,370

123,657

Accrued Income

9,114

9,390

Property and equipment net

369,477

244,728

Plant and Machinery.

17,595

18,100

Liabilities and stockholders Equity

Accounts payable .

$38,034

$28,668

Short- term bank loans ..

16,241

13,138

Accrued payables ..

18,005

13,436

Accrued taxes

28,811

15,804

Bonds payable .

165,020

80,398

Mortgages .

8,842

4,503

Common stock

361, 309

265,679

Retained earnings

90,351

46,552

Castillo Sugar Company

Comparative Income Statement

(Dollars in thousands)

Current Year Prior Year

Revenue .

$ 696,481

$ 465,213

Gross margin .

$ 360,681

$ 253,934

Operating expenses:

Store operation expenses

$ 210,693

$ 148,757

Other operating expenses .........

$ 19,787

$ 13,932

Depreciation and amortization

$ 35,950

$ 22,486

General and administrative expenses .

$ 37,258

$28, 643

Gain on sale of investment

$ 9,218

$ 0

Plus interest income .

$ 11,029

$ 6,792

Less interest expense

$ 8,739

$ 3,765

Net income before taxes

$ 68,501

$ 43,143

Less income taxes .

$ 26,373

$ 17, 041

Required:

For the current year

1. Compute the return on total assets. (10 points)

2. Compute the return on common stockholders equity. (10 points)

3. Is Castillos financial leverage positive or negative? (5 points) Explain. (15 points)

4. Compute the current ratio (10 points)

5. Compute net operating income ratio (5 points)

6. Compute the inventory turnover. (10 points)

7. Compute the average sale period. (10 points)

8. Compute the debt -to- equity ratio (10 points)

9. Compute net profit margin ratio. (5 points)

10. Compute operating expenses ratio. (10 points)