Evaluate the financial performance of the company: a) Ability of the firm to pay its short-term liabilities using its most liquid asset b) % financed by the creditors c) Profit obtained by one capital stock d) % of gross profit for every sale e) Cash received by one capital stock as a distribution of firm’s profit f) How fast accounts are collected g) Comparison between the claims of the creditors versus owners h) How long finished goods stay in the warehouse before they are sold i) Capitalization of one common stock Aero Corp. Balance Sheet as of Dec. 31 of Yr. 3 Cash ------------------------------------------------ 3,000 Marketable Securities ------------------------------------------------ 1,000 Notes Receivables ------------------------------------------------ 4,000 Accounts Receivables ------------------------------------------------ 10,000 Allowance for bad debts ------------------------------------------------ 2,000 Merchandise Inventory ------------------------------------------------ 6,000 Prepaid Rent ------------------------------------------------ 1,000 Total Fixed Assets ------------------------------------------------ 40,000 Accumulated depriciation------------------------------------------------- 5,000 Total Assets ------------------------------------------------ 58,000 Liabilities and Stockholder’s Equity Accounts Payable ----------------------------------- 10,000 Notes Payable ----------------------------------- 15,000 Accrued Expenses ----------------------------------- 5,000 Mortgage Payable ----------------------------------- 15,000 Bonds Payable ----------------------------------- 10,000 Total Liabilities ----------------------------------- 55,000 Stockholder’s Equity, per values P10----------------------------------- 3,000 Other data: Dividends declared ----------------------------------------- P50,000 Average Market Price per share----------------------------------------- P150 Income Statement Yr. 3 Yr. 4 Yr. 5 Net Sales 190,000 200,000 180,000 Cost of Goods Sold 65,000 70,000 64,000 Operating Expenses 30,000 40,000 42,000 Interest Expense 5,000 6,000 5,000 Income tax rate is 35%.