COMPARATIVE FINANCIAL STATEMENTS FOR MELBOURNE INC. ARE SHOWN BELOW: BALANCE SHEET AS OF DECEMBER 31 2022 ASSETS CURRENT ASSETS: CASH ACCOUNTS RECEIVABLE INVENTORY 12,000 PREPAID EXPENSES TOTAL CURRENT ASSETS 24,900 15,900 64,000 TOTAL ASSETS $ 3,000 $ 800 INTANGIBLE ASSETS, NET 47,000 PROPERTY, PLANT, AND EQUIPMENT, NET 103,600 123,300 22,800 LONG-TERM DEBT TOTAL LIABILITIES 15,000 20,000 2021 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: ACCOUNTS PAYABLE $ 11,000 OTHER CURRENT LIABILITIES TOTAL CURRENT LIABILITIES 15,200 STOCKHOLDERS' EQUITY: COMMON STOCK 15,000 ADDITIONAL PAID-IN CAPITAL 20,000 RETAINED EARNINGS NET SALES $270,000 COST OF GOODS SOLD 142,300 184,000 GROSS MARGIN 86,000 OPERATING EXPENSES 64.000 54,000 OPERATING INCOME 7,800 NET EARNINGS 6,700 7,140 1,400 $192,500 $186,200 120,000 142,800 2021 87,700 33,700 8,500 $ 20,660 8,200 INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2022 14,700 TOTAL STOCKHOLDERS' EQUITY TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $192,500 $186,200 22,000 INTEREST EXPENSE 7,500 5,900 EARNINGS BEFORE INCOME TAXES 14,500 27,800 INCOME TAXES 900 $ 230,000 $ 12,000 11,800 128,000 143,200 6,000 49,700 8.000 3,200 43,000 $

COMPARATIVE FINANCIAL STATEMENTS FOR MEIROURNE INC ARE SHOWN BELOW BALANCE SHERT AS OF DEGENBER M 2022 2021 AStis GURENT ASSETS: CASII $3,000 \& 800 ACCOUNTS RECHVABLE 8500 INVENTORY 120008,00 PREPAID EXPENSES 1.400 980 TOTAL CURRENT ASSEIS 24,900 is.900 PROPERTY, PLANT, AND EQUIPMENT, NET 103.600123400 INTANGIBLE ASSEIS, NET 6400947000 TOTALASSETS 5192cm51cm LUEILTIES AND STOCKHOLDERS EQtTh CURRENTLMAILTIFS: ACCOUNTS PAYABLE \& $11,000 is 12000 TOTAL CURRENT LABMLITS 2280015200 LONG-TERM DEBT 120009128CO TOTALLABILITES 142800 14390 STOCKHOIDERS' EQuTh: COMmoN STOCK 15,00915,000 ADDHTONAL PADAN CAPTILL 2000020000 RETAINED BARNINGS: 14.700 519250 sistoge INCOMESTATEMENT FOR THE VEAR NDED DECEMBER 3t. 20222021 NFT SA1FS $270000 COST OF GOODS SOLD 184000142st GROSS MARGIN 86,00087,700 OPER MING BXPENStBS 6400054000 OPERATING INCOME 2200033,200 INTERIST BXPENSE 7,5005900 ENRNINGS BFFORE INCOME TAXPS 14.500 27,500 INCOME TAXIES I.600 7.740 NET EARNINGS G.700 S. 20.60 5 Chapter 14 - Ratio Formulas Profitabilite Ratios Earnings per share (Net incoms - Profernd dikidsods) - Whiphad-wenge cammon shares outanding Price-earniass ratio Maket prise per share - Earnings per shine Payout Ratis Cah dividends paid ce common stokk + Net insome Gross Frufit Rate or Gross margin peresntage: Gross magin - Net vales Profit Margin Net incones - Ner coles Return on total assets : Net incoene - Average Total asests Return ea cummes steckhalders' equity (Net insoms - Pefierod chidtads) - Average Common wholdhen' equity Turnoser Ratios Asset turaever Net wales - Averepe Tothl assets Accounts recirable Average Cellection Period or Day' eales in receivable 365 - Accounta reccivable turnover Days" sales in inventery 365 imsentocy turnoner Liquidisy DebteRslated Raties Current ratio Cursent assese - Curstent Iabiphic Acld-test ratio (quikk ratio) (Cach + Marketable securitics : Short-tere roseivables)- Current linblities Debt-to-equity ratio Total liabilities-Sfockhalders "equiny Debt to Assets Ratle Total liakilitias - Total Acute