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COMPANY A Balance sheet December 31, 2007 ASSETS DOLLAR AMOUNT Current assets Cash 12,100 Petty Cash 100 Temporary Investments 50,000 Accounts Receivable - Net 40,500

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COMPANY A Balance sheet December 31, 2007 ASSETS DOLLAR AMOUNT Current assets Cash 12,100 Petty Cash 100 Temporary Investments 50,000 Accounts Receivable - Net 40,500 Inventory 37,000 Supplies 3,800 Prepaid Insurance 1,500 Fixed assets Investments 36,000 Land 5,500 Land Improvements 6,500 Buildings 180,000 Equipment 201,000 Other assets Goodwill 105,000 Trade Names 210,000 Others 13,000 LIABILITIES Current liabilities Notes Payable 18,500 Accounts Payable 35,900 Wages Payable 8,500 Interest Payable 2,900 Taxes Payable 6,100 Warranty Liability 1,100 Other liabilities Long-term debt 20,000 Other 400,000 SHAREHOLDER'S EQUITY Common Stock, $11 par value (10,000 shares) 110,000 Preferred Stock, 6%, $100 par value (100 shares) 10,000 Retained Earnings 229,000 Treasury Stock 50,000 Capital Surplus 10,000 As per income statement dated December 31, 2007, Company A's revenue is $800,000 and net income is $50,000 with 4.5% tax rate and 2.5% interest rate on long-term liabilities. Find the following ratios: a) Debt ratio b) Current ratio c) Quick ratio d) Total asset turnover e) Net margin ratio f) Return on equity g) Earnings per share (Hint: consider common stock and net income of $50,000)

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