Current Year Prior Year FAV(UNF)

Total Revenue 100.0% 100.0%

Cost of Revenue 31.3% 32.2%

Selling, General &Admin. 30.6% 31.0%

Research & Development 11.5% 11.4%

Depreciation, Amort. &Depletion - -

Special Charges(Income) 0.8% 1.7%

Other Operating Expenses - -

Net Interest Income (Expense) 0.6% 0.7%

Other Income (Expense), net 3.5% 2.4%

Provision-Income Tax Expense(Income) 2.3% 4.8%

Minority Interest Expense(Income) - -

Equity in Affiliates - -

Discontinued Operations Income(Exp) - -

Net Income 19.4% 16.1%

(b) Based on your vertical analysis, state the major reasons for the change in net income

as a percentage of revenue and whether the change was favorable or unfavorable.

1. Ratios

(a) Calculate the following ratios for the last TWO years and indicate whether the trend was favorable or unfavorable (two decimal places for times ratios (e.g. 1.42X); one decimal place for percentage ratios (e.g.12.8%)).

. FAVORABLE Current Year Prior Year (UNFAVORABLE)

Liquidity/Solvency Ratios

1-Current Ratio

(Current Assets / Current Liabilities) 2.20X 1.90X FAV

2- Acid-test Ratio

(Cash, Equity & ST investments + 1.59X 1.33X FAV

Receivables / Current

Liabilities)

3-Accounts Receivables Turnover 6.20% 6.14% FAV

(Total Revenues/ Average

Receivables)

4-Inventory Turnover 2.91% 3.14% UNF

(Cost of Revenue /

Average Inventories)

5-Debt Ratio

(Total Liabilities / Total Assets) 0.44X 0.47X FAV

End of End of Incr. (Decr.) Balance Sheet Current Year Prior Year $ %

6- Cash, Equiv & ST Investments 29,206 21,089 8,117 38.5

7- Total Current Liabilities 25,675 24,262 1,413 5.8

Overall Conclusion on Liquidity/Solvency based on above Ratios and Balance Sheet data

FAVORABLE Current Year Prior Year (UNFAVORABLE)

Profitability Ratios

1. Gross Margin

(Gross Profit / Total Revenue) 0.69X 0.68X FAV

1. Profit Margin

(Net Income / Total Revenue) 0.19X 0.16X FAV

1. Return on Common

Stockholders