Dana Dairy Products Key Ratios

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Dana Industry Average

2008 2009

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Current Ratio 1.3 1.0

Quick Ratio 0.8 0.75

Average collection Period 23 days 30 days

Inventory Turnover 21.7 19

Debt Ratio 64.7% 50%

Times Interest Earned 4.8 5.5

Gross Profit Margin 13.6% 12.0%

Net Profit Margin 1.0% 0.5%

Return on total assets 2.9% 2.0%

Return on Equity 8.2% 4.0%

Income Statement

Dana Dairy Products

For the Year Ended December 31, 2009

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Sales Revenue $100,000

Less: Cost of Goods Sold 87,000

Gross Profits $ 13,000

Less: Operating Expenses 11,000

Operating Profits $ 2,000

Less: Interest Expense 500

Net Profits Before Taxes $ 1,500

Less: Taxes (40%) 600

Net Profits After Taxes $ 900

Balance Sheet

Dana Dairy Products

December 31, 2009

ASSETS

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Cash $ 1,000

Accounts Receivable 8,900

Inventories 4,350

Total Current Assets $14,250

Gross Fixed Assets $35,000

Less: Accumulated Depreciation 13,250

Net Fixed Assets 21,750

Total Assets $36,000

LIABILITIES & STOCKHOLDERS EQUITY

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Accounts Payable $ 9,000

Accruals 6,675

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Total Current Liabilities $15,675

Longterm Debts 4,125

Total Liabilities $19,800

Common Stock 1,000

Retained Earnings 15,200

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Total Stockholders' Equity $16,200

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Total Liab. & S.E. $36,000

Evaluate the financial results of Dana Dairy Products for fiscal year end 2009 in the following areas; liquidity, activity, debt, profitability, and market.