Cupcake Recipe Makes 24 cupcakes Ingredients: - Vanilla cupcake mix (1 box) - 10oz frozen strawberries in syrup, thawed - 8 oz cream cheese, softened - 1/4 cup butter, softened - 1 teaspoon vanilla - 4 cups icing (powdered) sugar - Red food coloring - 24 strawberries - 14 muffin cups Year End Financials - To get started, your mom gave your sister $500 in exchange for stock in the new business. - Your sister purchased an oven for $1250 using a 3 year loan with an annual interest rate of 4.7%. She still owes $1000 plus interest. - The muffin pans, bowl, mixing spoon, and frosting applicator can be used again next year. - A friend of yours covered a day at the farmer's market (3 hours). Your sister still owes them wages for that day. - At the end of the year, your sister has cash on hand. She also has $20 worth of consumables on hand for next year (red food coloring, muffin cups, etc) plus the nonconsumables. She started the year with 0 cupcakes, sold 720 , and ended the year with 0 cupcakes (cupcakes won't keep until next year's farmers market). - The vendor next to her at the farmer's market still owes her $30 from the money she lent them (they needed cash for giving change). Using the data provided, calculate the financial ratios (show work, explain where numbers come from): 1. Net profit to owners equity (2) 2. Net profit to net sales (2) 3. Net sales to fixed asset (2) 4. Current ratio (2) 5. Acid test (2) 6. Receivables to working capital (2) 7. Inventory to working capital (2) 8. Collection period (2) 9. Net sales to inventory (2) 10. Inventory turnover ratio (2) 11. Net sales to working capital (2) 12. Long term liabilities to working capital (2) 13. Debt to owners equity (2) 14. Current liabilities to owners equity (2) 15. Fixed assets to owners equity (2) According to the financial ratios: 1. Are profits satisfactory? How do you know? (2) 2. Are assets productive? How do you know? (2) 3. Can the business pay its debts? How do you know? (2) 4. How good are the business's assets? How do you know? (2) 5. Is the equity in the business satisfactory? How do you know? (2) 6. How would you assess the overall performance of the organization? Poor? Fair? Good? Why? (2)