Income statement

Sales $2,200,000$

C$.$O$.$G$.$S $1,100,000$

Gross profit $1,100,000$

Depreciation $42,000$

SG&A $550,000$

Other Operating Expense $22,000$

Operating income $486,000$

Other Income $540,000$

Interest Income $240,000$

EBIT $1,266,000$

Interest Expense $240,000$

EBT $1,026,000$

Tax Expense $359,100$

Profit$/$Loss $666,900$

E$.$P$.$S $0\mathrm{.}667$

D$.$P$.$S $0\mathrm{.}233$

Balance Sheet

Assets

Cash $130,000$

Marketable securities $150,000$

Accounts Receivable $440,000$

post dated checks $220,000$

Inventory $1,100,000$

Total Current Assets $2,040,000$

PP&E $2,100,000$

Long$-$Term investments $6,000,000$

Land $2,000,000$

Total Long Term Assets $10,100,000$

Total Assets $12,140,000$

Liabilities

Accounts Payable $440,000$

Due to banks $680,000$

Accrued long$-$term debt $320,000$

Total Current Liabilities $1,440,000$

Long$-$Term loans $3,000,000$

Deferred Taxes $50,000$

Other Long$-$term Liabilities $150,000$

Total Long$-$Term Liabilities $3,200,000$

Total Liabilities $4,640,000$

Shareholders' Equity

Paid in Capital $5,000,000$

Retained Earnings $2,500,000$

Total Shareholders' Equity $7,500,000$

Total Liability and Equity $12,140,000$

Note: Use the information provided by XYZ Pharmaceuticals LLC in the $2024$ financial statements above to calculate the following financial ratios:

Liquidity ratio

Current ratio : Current asset$/$ current liabilities

Quick ratio : Current asset $-$ Inventory $/$Current liabilities

Cash ratio : Cash $/$ Current liabilities

Net working capital to total assets : Net working capital $/$ Total assets

Interval measure : Current assets $/$ Average daily operating cost

Financial leverage ratio

Total debt ratio :Total asset $-$ Total equity $/$ Total asset

Debt$-$equity ratio : Total debt$/$Total equity

Equity multiplier : Total asset $/$Total equity

Long$-$term debt ratio: Long$-$term debt $/$ Long$-$term debt $+$Total equity

Times interest earned ratio : EBIT$/$ Interest

Cash coverage ratio: EBIT$-$Depreciation$/$Interest

Turnover ratio

Inventory turnover :COGS$/$ inventory

Days sales in inventory : $365$ days $/$ inventory turnover

Receivables turnover : Sales $/$ Accounts receivables

Days sales in receivables : $365$days $/$ Receivables turnover

NWC turnover :sales $/$NWC

Fixed asset turnover : sales$/$ Net fixed assets

Total asset turnover : Sales $/$ Total Assets

Profitability ratio

Profit margin: Net income$/$ Sales

Return on asset $($ROA$)$ :Net income$/$ Total asset

Return on equity $($ROE$)$ : Net income$/$ Total equity

ROE : Net income$/$Sales $*$ Sales $/$ Assets $*$Assets $/$ Equity

Market value ratio

Price$-$earning ratio: Price per share $/$Earning per share

PEG ratio : Price $-$earning ratio$/$Earning growth rate

Price$-$sales ratio : Price per share $/$ Sales per share

Market$-$to$-$book$-$ratio : Market value per share $/$ Book value per share

Tobins Q ration : Market value of asset $/$ Replacement cost of asset