i am having a hard rime understanding my class project. thanks

1. Perform Ratio Analysis for the entity. Compute each ratio under the four key categories. referenced in class. In addition to computing the ratios under the four key categories, perform DuPont Analysis as appropriate (ie, for ROA and ROE). 2. Determine a value for the entity using Net Income as a Perpetuity and ROE as the % Discount Rate. SAXTON COMPANY Income Statement For the Year Ended December 31, 2009 Sales (all on credit) Cost of Goods Sold. $ 4,000,000 ...3,000,000 Gross Profit..... Selling and Administrative Expenses. $ 1,000,000 450,000 Operating Profit Interest Expense. Extraordinary Loss... Earnings Before Taxes. Income Taxes (33%)... Net Income. $ 550,000 50,000 200,000 $ 300,000 100,000 $ 200,000 SAXTON COMPANY Balance Sheet As of December 31, 2009 Assets Cash..... Accounts Receivable. Marketable Securities Inventory........ $ 30,000 350,000 50,000 370,000 Total Current Assets.. $ 800,000 Net Plant and Equipment... 800,000 Total Assets $ 1,600,000 Liabilities and Stockholders' Equity Accounts Payable. Notes Payable. $ 50,000 250,000 Total Current Liabilities. $ 300,000 Long Term Liabilities 300,000 Total Liabilities $ 600,000 Common Stock Retained Earnings. 400,000 600,000 Total Stockholders' Equity $ 1,000,000