i need help please

Company Name: T & T, Inc.

Type of Small Business: Manufacturer (producer)

Product: Widget

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Income statement related financial information:

T & T, Inc. sells widgets for $30 individually and they sold a total of 70,000 units in fiscal year 2016.

To build product awareness with potential tourists, T & T, Inc. purchased a billboard in downtown Chicago which costs $10,000 monthly.

The marketing manager establishes a new promotional campaign for widgets by advertising with the CTA using print ads on EL trains for $3,000 monthly.

T & T, Inc. has an interest expense of $2,000 monthly for its mortgage.

T & T, Inc. pays a total dividend payment of $10,000 annually.

T & T, Inc. has administrative costs of $5000 monthly.

The cost of making 1 widget is $15.

To help strengthen the supply chain relationship with wholesalers, T & T, Inc. travels often to wholesaler locations for meetings, lunches, dinners which creates on average a selling expense of $12,000 monthly.

T & T, Inc. has an Illinois state income tax rate of 22% annually on its profits before tax.

To pay employees, T & T, Inc. has a salary expense of $50,000 monthly.

Depreciation of truck asset - $500 monthly (life of 6 years).

T & T, Inc. has an interest expense of $500 monthly for its equipment loan.

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Balance sheet related financial information:

T & T, Inc. has Cash of $150,000.

T & T, Inc. has a manufacturing facility valued at $250,000 - building ($125k) & land ($125k)

**T & T, Inc. has already invested $50,000 cash as down payment, remaining funds come from a bank mortgage of $200k).

T & T, Inc. holds a manufacturing process patent valued at $150,000.

T & T, Inc. has $787,880 in common stock.

T & T, Inc. owes $50,000 on a long-term note for their equipment.

T & T, Inc. has Accounts Receivable of $450,000.

T & T, Inc. owes $200,000 in account payables.

T & T, Inc. owes $25,000 in accrued expense.

T & T, Inc. owes $50,000 in short-term notes.

T & T, Inc. has manufacturing equipment $50,000.

T & T, Inc. has Inventory of $300,000.

T & T, Inc. has $37,120 in retained earnings.

T & T, Inc. owes $200,000 on a mortgage for their facility.

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Cash budget related financial information:

Historical sales, sales projections, inventory costs

2016 Historical Sales Data		2017 Predicted Sales Data
November	$75,000	January	$100,000
December	$75,000	February	$180,000
		March	$180,000
		April	$190,000
		May	$250,000

Of T & T, Inc.s sales, 40% is collected in the month of the sale, 30% is collected in the following month, and the remaining 30% is collected in the month after that.

Inventory will be purchased 1 month in advance of sale, but will be paid in the month of the sale.

Inventory costs will be 60% of following months expected sales.

To build product awareness with potential tourists, T & T, Inc. purchased a billboard in downtown Chicago which costs $10,000 monthly.

The marketing manager establishes a new promotional campaign for widgets by advertising with the CTA using print ads on EL trains for $3,000 monthly.

T & T, Inc. has administrative costs of $5000 monthly.

To help strengthen the supply chain relationship with wholesalers, T & T, Inc. travels often to wholesaler locations for meetings, lunches, dinners which creates on average a selling expense of $12,000 monthly.

To pay employees, T & T, Inc. has a salary expense of $50,000 monthly.

Utilities Cost is 2% of current months sales paid for in the same month occurred.

To boost cash flow to start the new fiscal year of 2017, common stock is sold for $100,000

To expand manufacturing capacity for peak production times during early summer, T & T, Inc. will invest in renovations to their facility for $15,000 in March.

To go along with the expanded capacity of facility, T & T, Inc. will purchase additional equipment for $10,000 in March.

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Key Financial Ratios:

To understand the liquidity of T & T, Inc. calculate the current ratio. (Industry avg. 2.2)

To understand T & T, Inc.s profitability on its assets calculate the return on assets (ROA). (Industry avg. 12%)

To understand the use of debt by T & T, Inc. calculate the debt ratio. (Industry avg. 50%)

To find out the rate of return (ROR) earned by the owners on their equity investment in T & T, Inc. calculate the return on equity (ROE). (Industry avg. 10%)