HW 34. Using the financial statements for the Goodyear Calendar Company, calculate the 13 basic ratios found in the chapter. GOODYEAR CALENDAR COMPANY Balance Sheet December 31, 2008 Assets Current assets: Cash $ 40,000 Marketable securities 30,000 Accounts receivable (net) 120,000 Inventory 180,000 Total current assets $370,000 Investments 40,000 Plant and equipment 450,000 Less: Accumulated depreciation (100,000) Net plant and equipment 350,000 Total assets $760,000 GOODYEAR CALENDAR COMPANY Liabilities and Stockholders Equity Current liabilities: Accounts payable $ 90,000 Notes payable 10,000 Accrued taxes 10,000 Total current liabilities 110,000 Long-term liabilities: Bonds payable 170,000 Total liabilities 280,000 Stockholders equity Preferred stock, $100 par value 90,000 Common stock, $1 par value 60,000 Capital paid in excess of par 230,000 Retained earnings 100,000 Total stockholders equity 480,000 Total liabilities and stockholders equity $760,000 GOODYEAR CALENDAR COMPANY Income Statement For the Year Ending December 31, 2008 Sales (on credit) $2,000,000 Less: Cost of goods sold 1,300,000 Gross profit 700,000 Less: Selling and administrative expenses 400,000* Operating profit (EBIT) 300,000 Less: Interest expense 20,000 Earnings before taxes (EBT) 280,000 Less: Taxes 112,000 Earnings after taxes (EAT) $ 168,000 *Includes $10,000 in lease payments.