Exhibit B Stoneway Dreamscapes Balance Sheet At December 31 2014 2013 Cash $ 4,076 $ 3,100 Short term investments 3,800 4,500 Accounts receivable 13,254 9,520 Inventory 19,870 18,300 Current assets $ 41,000 S 35,420 Fixed assets 130,167 142,350 Total assets $ 171,167 $177, 770 Accounts payable Notes payable Current liabilities $ 3,989 $ 5,100 2,000 3,989 7,100 Long-term debt $ 108,070 $ 130,000 Equity $ 59,107 $ 40,670 Total Liabilities and Owner's Equity $ 171, 167 $177,770 1. In your ratio analysis of Stoneway, calculate the following, for 2014: a. Current ratio b. Quick ratio c. Total debt ratio d. Long-term debt ratio e. Times interest earned ratio f. Cash coverage ratio & Receivables turnover ratio (assume all sales are made on credit) h. Days' sales in receivables Profit margin Return on assets k Return on equity 2. What immediate impact would the company see in its balance sheet, in terms of the long-term debt ratio, if Jordan is successful in raising $250,000 in new loans? (Treat these loans os long-term, only.) What will the percentage change in the ratio be? 3. If in addition to the $250,000 in new loans Jordan is also successful in raising an additional $250,000 of new equity, what will be the immediate effect, in terms of the long-term debt ratio, on the company's balance sheet? 4. With consideration of your answers to questions 1, 2, and 3 above, discuss the company's current financial strength. How is Stoneway Dreamscapes positioned now, relative to Jordan's goals for expansion? Assuming $250,000 in new debt and $20,000 in new interest charges, and a new equity contribution of $250,000, how would Stoneway be positioned, relative to lordan's goals