1. Financial Ratios: Calculate the following financial ratios and explain the meaning of the results.
   1. Net Profit Margin
   2. Quick Ratio
   3. Debt-to-Equity Ratio

Income Statements
For Year 20XX
Particulars	Amount $
Sales Revenue	33600
Less Cost of Goods Sold	12600
Gross Profit (loss)	21000
Less: Operating and Admin. Expenses
Advertising Exp	2000
Bank Fees	150
Phone and Internet	1200
Shipping	1260
Utilities	900
Office Supplies	800
Depreciation Expense	800
Total Admin and Operating Expenses	7110
Income/Profit Before Tax and Interest	13890
Less:
Repayment of Note Payable	5000
Interest on Notes Payable	350
Icome/Profit Before Tax	8540
Less: Tax (at 26%)	2220
Net Profit	6320
Cash Flow Statement For Year 20XX
Particulars	Amount $
Sales in Cash	33600
Add:
Sale of Equipment Gain (3000-800)	2200
Depreciation	800
Deductions
Repayment of Note Payable	5000
Purchase of Equipment	1600
Raw materials Inventory	10500
Total Cash at the end of year 20XX	19500
Balance Sheet For Year 20XX
Assets	Amount $
Cash	10000
Raw Materials Inventory	10500
Equipment After Accumulated Depreciation	4000
Total Assets	24500
Liabilities
Common Stock	15000
Notes Payable	5000
Retained Earnings	4500
Total Liabilities	24500