Fin 301 Chapters 3 In-Class Exercises 1. Calculate the ratios below using the Balance Sheet and Income Statement for Tradewinds, Inc. Additional facts are that Tradewinds has 400,000 shares of stock outstanding that is trading at a price of $5.00 per share in 2011 and $6.00 per share in 2012. A formula sheet is attached. Ratio Quick Ratio Days in Inventory Days Sales in Receivable Total Debt Ratio: Debt/Equity Ratio Equity Multiplier ROA ROE Price/Earnings Ratio 2012 2011 2. Use the template below to complete a common size income statement using percent of sales. Income Statement Dollars 2012 2011 Percent of Sales 2012 2011 Net Sales Cost of Sales & Operating Expenses: Cost of Goods Sold Depreciation Expense Selling & Administrative Expense Total CGS & Operating Expenses Operating Profit Other Income: Dividends and Interest Total Income from Operations Less Interest on Bonds & Liabilities Income before Income Taxes Income Taxes Net Income $ 11,500,000 $10,700,000 $ 8,200,000 $ 7,684,000 300,000 $ 275,000 $ $ 1,400,000 $ 1,325,000 $ 9,900,000 $9,284,000 $ 1,600,000 $ 1,416,000 50,000 $ 50.000 $ 1,650,000 $ 1,466,000 (300,000) $ (150,000) $ $ 1,350,000 $ 1,316,000 $ (610,000) $ (600,000) $ 740,000 $ 716,000 Dividends $ (90,000) S (132,000) Transfer to Retained Earnings $ 650,000 $ 584,000