Given the balance sheet and income statement (on the next page), historical ratios and industry averages, calculate the Pulp, Paper, and Paperboard, Inc. financial ratios for the most recent year.

Historical and Industry Average Ratios, Pulp, Paper and Paperboard, Inc.

Ratio	1997	1998	1999	Industry 1999
Current Ratio	1.6	1.7		1.6
Quick Ratio	0.9	1.0		0.9
Inventory Turnover	8.1	0.3		8.4
Average Collection Period	33 days	37 days		39 days
Total Asset Turnover	2.3	2.2		2.2
Debt Ratio	60%	56%		58%
Times Interest Earned	2.5	3.5		2.3
Gross Profit Margin	21%	19.7%5		20.4%
Operating Profit Margin	4.7%	4.8%		4.7%
Net Profit Margin	1.8%	1.6%		1.4%
Return on Total Assets	4.1%	3.5%		3.08%
Return on Equity	10.3%	7.9%		7.3%

Income Statement

Pulp, Paper and Paperboard, Inc.

For the Year Ended December 31, 1999

__________________________________________________________

Sales Revenue $2,080,976

Less: Cost of Goods Sold 1,701,000

Gross Profits $ 379,976

Less: Operating Expenses 273,846

Operating Profits $ 106,130

Less: Interest Expense 19,296

Net Profits Before Taxes $ 86,834

Less: Taxes (40%) 34,810

Net Profits After Taxes $ 52,024

Balance Sheet

Pulp, Paper and Paperboard, Inc.

December 31, 1999

Assets

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Cash $ 95,000

Accounts receivable 237,000

Inventories 243,000

Total current assets $ 575,000

Gross fixed assets 500,000

Less: Accumulated depreciation 75,000

Net fixed assets $ 425,000

= = = = = =

Total assets $1,000,000

Liabilities and stockholders' equity

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Current liabilities

Accounts payable $ 89,000

Notes payable 169,000

Accruals 87,000

Total current liabilities $ 345,000

Longterm debts 188,000

Total liabilities $ 533,000

Stockholders' equity

Common stock 255,000

Retained earnings 212,000

Total stockholders' equity $ 467,000

= = = = = =

Total liabilities and stockholders' equity $1,000,000