Heifer Sports Financial Statements
Income Statement	2021
Sales	$ 5,500,000
Cost of Goods Sold	2,850,000
Depreciation	280,000
Selling and Administrative Expenses	1,500,000
EBIT	$ 870,000
Interest Expense	130,000
Taxable Income	$ 740,000
Taxes	330,000
Net Income	$ 410,000
Heifer Sports currently has 1,000,000 shares of common stock outstanding and a market price of $4.92 per share.
Balance Sheet	Dec. 31, 2021	Dec. 31, 2020
Assets
Cash	$ 50,000	$ 40,000
Accounts Receivable	660,000	690,000
Inventory	490,000	480,000
Total Current Assets	$ 1,200,000	$ 1,210,000
Fixed Assets	3,100,000	2,800,000
Total Assets	$ 4,300,000	$ 4,010,000
Liabilities
Accounts Payable	$ 340,000	$ 450,000
Short-Term Debt	480,000	550,000
Total Current Liabilities	$ 820,000	$ 1,000,000
Long-Term Bonds	2,520,000	2,200,000
Total Liabilities	$ 3,340,000	$ 3,200,000
Shareholders Equity
Common Stock	$ 310,000	$ 310,000
Retained Earnings	650,000	500,000
Total Shareholders Equity	$ 960,000	$ 810,000
Total Liabilities and Shareholders Equity	$ 4,300,000	$ 4,010,000

Use Heifer Sports financial statements to find three of these financial ratios. For each one that you find, explain what it measures.

1. Inventory Turnover Ratio.
2. Debt to Equity Ratio.
3. Average Collection Period.
4. Interest Coverage Ratio.
5. Operating Profit Margin.
6. Return on Equity.
7. P/E Ratio.