Forcasted Balance Sheet as of December 31,2010

Cash $72,000

Accounts receivables $439,000 Accounts and notes payable $432,000

Inventorties $894,000 Accruals $170,000

Total Current Assets $1,405,000 Total current liabilities $602,000

Land and building $238,000 Long-term debt $404,290

Machinery $132,000 Common Stock $575,000

Other fixed assets $61,000 Retained earnings $254,710

Total assets $1,836,000 Total liabillities and equity $1,836,000

Forcasted Income Statement for 2010

Sales $4,290,000

Cost of goods sold $3,580,00 Per Share Data

Gross operating profit $710,000 EPS $4.71

General admin & selling $236,320 DPS $0.95

Depreciation $159,000 P/E Ratio Market Price $23.57

Misc. $134.000 Number of shares outstanding 23000

Earnings beforeTaxes $180.680

Taxes $72,272

Net Income $108.408

Industry Financial Ratio Hope's Financial Ratios

Ratio/Comment

Quick Ratio = 1x Quick Ratio = ?

Current Ratio = 2.7x Current Ratio = ?

Inventory Turnover = 7x Inventory Turnover= ?

Days Sales Outstanding = 40days Days Sales Outstanding= ?

Fixed Assets Turnover = 13x Fixed Assets Turnover = ?

Total Assets Turnover = 2.6x Total Assets Turnover = ?

Return on Assets = 9.10% Return on Assets = ?

Return on Equity = 18.20% Return on Equity = ?

Debt Ratio = 55% Debt Ratio = ?

Profit Margin on Sales = 3.50% Profit Margin on Sales = ?

P/E Ratio = 6x P/E Ratio = ?

A. Calculate the indicated ratios for Hope's in the appropriate ?

B. Outline Hope's strengths and weakness as compared to its industry. Be detailed in your ratio analysis

c. Recommend at least three areas for correction. Be sure to support your recommendations