Financial performance

Briefly describe the above performance of the company based on its financial ratios as per given. Please be PRECISE. (200-400 words)

EXHIBIT 4: THE ITALIAN BAKERY-FINANCIAL RATIOS 2014 2013 PROFITABILITY Total sales Cost of goods sold Gross profit Operating expenses Administrative expenses Amortization Management salary Wages Utilities Advertising Insurance Telephone and Internet Fuel Repairs Miscellaneous Total operating expenses Operating income Interest expense Net earnings before taxes Income taxes Net income after taxes Return on average equity 100.0% 15.4% 84.6% 2.2% 1.9% 7.0% 54.4% 7.5% 1.0% 1.9% 0.7% 0.5% 0.6% 0.2% 77.9% 6.7% 1.2% 5.6% 1.2% 4.4% 45.5% 100.0% 15.8% 84.2% 2.9% 2.0% 7.3% 53.7% 7.9% 1.1% 2.0% 0.7% 0.5% 0.6% 0.2% 78.8% 5.4% 1.5% 3.9% 0.8% 3.1% 33.5% 2012 100.0% 14.7% 85.3% 2.9% 2.0% 6.1% 52.3% 7.7% 1.0% 2.0% 0.7% 0.5% 0.6% 0.2% 75.9% 9.4% 1.0% 8.3% 1.8% 6.6% 71.3% LIQUIDITY Current ratio Acid test Working capital EFFICIENCY Age of accounts receivable Age of inventory Age of payables STABILITY Net worth to total assets Interest coverage GROWTH Sales Net income Total assets Equity Source: Company files. EXHIBIT 4 (CONTINUED) 2014 1.42:1.00 1.31:1.00 32,300 32 days 19 days 60 days 44.0% 5.83 x 2013-2014 5.0% 49.2% -6.6% 12.5% 2013 1.28:1.00 1.18:1.00 23,087 33 days 18 days 67 days 36.5% 3.66 x 2012 1.76:1.00 1.67:1.00 39,434 30 days 12 days 40 days 38.1% 9.07 x 2012-2013 4.0% -51.2% 12.0% 7.2% EXHIBIT 4: THE ITALIAN BAKERY-FINANCIAL RATIOS 2014 2013 PROFITABILITY Total sales Cost of goods sold Gross profit Operating expenses Administrative expenses Amortization Management salary Wages Utilities Advertising Insurance Telephone and Internet Fuel Repairs Miscellaneous Total operating expenses Operating income Interest expense Net earnings before taxes Income taxes Net income after taxes Return on average equity 100.0% 15.4% 84.6% 2.2% 1.9% 7.0% 54.4% 7.5% 1.0% 1.9% 0.7% 0.5% 0.6% 0.2% 77.9% 6.7% 1.2% 5.6% 1.2% 4.4% 45.5% 100.0% 15.8% 84.2% 2.9% 2.0% 7.3% 53.7% 7.9% 1.1% 2.0% 0.7% 0.5% 0.6% 0.2% 78.8% 5.4% 1.5% 3.9% 0.8% 3.1% 33.5% 2012 100.0% 14.7% 85.3% 2.9% 2.0% 6.1% 52.3% 7.7% 1.0% 2.0% 0.7% 0.5% 0.6% 0.2% 75.9% 9.4% 1.0% 8.3% 1.8% 6.6% 71.3% LIQUIDITY Current ratio Acid test Working capital EFFICIENCY Age of accounts receivable Age of inventory Age of payables STABILITY Net worth to total assets Interest coverage GROWTH Sales Net income Total assets Equity Source: Company files. EXHIBIT 4 (CONTINUED) 2014 1.42:1.00 1.31:1.00 32,300 32 days 19 days 60 days 44.0% 5.83 x 2013-2014 5.0% 49.2% -6.6% 12.5% 2013 1.28:1.00 1.18:1.00 23,087 33 days 18 days 67 days 36.5% 3.66 x 2012 1.76:1.00 1.67:1.00 39,434 30 days 12 days 40 days 38.1% 9.07 x 2012-2013 4.0% -51.2% 12.0% 7.2%