income statement sales 2001 is

$ 4,050,000

Balance sheet

total assets 2001=

$ 2,350,000

total liabilities and equity 2001=

$ 2,350,000

For the year ending December 31 2003 Sales $ 6,500,000 $ Cost of goods sold 3,965,000 Gross Profit 2,535,000 Depreciation 485,600 Other opertating expenses 1,690,000 Earnings before Interest and Taxes (EBI 359,400 Interest 331,956 Earnings before Taxes 27.444 Income taxes 10,978 Net Income (profit for the year) $ 16,466 $ 2002 2001 5,550,000 3,385,500 2.430,000 2,164,500 1,620,000 287,200 158,500 1,387,500 1012,500 489,800 449,000 160,125 50,645 329,675 398,355 131,870 159,342 197 805 $ 239,013 Balance Sheet at December 31 2003 Cash $ 57,000 $ Accounts Receivable 95.000 Inventories 050.000 Prepaid Expenses 42,000 Total current assets 1.244,000 Property, Plant and Equipment 7.288,800 Less: Accumulated Depreciation 2.432,800 Net Property Plant and Equipment 4,856,000 Total Assets $ 6,100,000 $ Pag 2002 2001 110,000 $ 155,000 59,000 45,000 723,000 540,000 36,000 25,000 928,000 765,000 4,819.200 3.245.000 1,947,200 1,660,000 2,872,000 1585.000 3,800,000 ####### 99.000 267,435 Accounts payable 440,556 Line of Credit 570,638 3 Current portion of Long-term Debt 325 346 Total Current Liabilities 1,336,540 5. Long-term Debt 3.253,460 Equity 1.510 000 - Total liabilities and Equity $ 6,100,000 $ 3 Highlighted cells do not match case # due to rounding 165,000 353,000 162000 680.000 1.620.000 1.500.000 3,800 000 407 895 414,605 1527500 1 Selected Statement of Cash Flow Information 2 Cash from Operating Activities $ 408,623 $ 343,005 Cash used in Investing Activities $ 12.469.600) $ (1,574,200) 4 Cash from Financing Activities $ 2,007,977 $ 1.186.195 5 Change in Cash $ (53.000) $ 45,000 B D E High Performance Tire 2003 2002 0.93 1.36 0.04 0.16 96.66 77.90 2001 Industry Ratios 188 1.90 0.38 0.51 81.10 60 30 15 Current ratio 5 Cash ratio 5 Inventory turnover in Days Accounts receivable in days 3 Accounts payable in days Fixed asset turnover o Total asset turnover 1 Debt ratio 2 Times interest earned 3. Gross profit margin 14 Operating profit margin 15 Net profit margin (profit margin on Revenue) 16 Return on Assets 17 Return on Equity 18 Days of working capital 19 Cash Conversion Efficiency 20 Cash Conversion Cycle 3.19 2.00 30.00% 14.63 42.00% 12.00% 6.71% 13.42% 19.17% N/A N/A N/A N/A 1 Use the following ratio formulas in your analysis: 2 3 Current ratio = current assets/current liabilities 4 Quick ratio = (current assets - inventories - prepaid expenses/current liabilities 5 Cash ratio = cash/current liabilities 6 A/R turnover in days = Trade Receivables/Average daily sales 7 Inventory turnover in days = 365/inventory turnover 8 A/P turnover in days = 365/(cost of goods sold/accounts payable) 9 Fixed (capital) asset turnover = Revenue/capital assets 10 Total asset turnover = revenue/total assets 11 Debt Ratio = Total liabilities/total assets 12 Times Interest Earned = EBIT/Interest charges (expense) 13 Gross profit margin = gross profit/revenue 14 Operating Profit margin = EBIT/revenue 15 Net profit margin (profit margin on Revenue) = net income (profit for the year)/Revenue 16 Return on Assets = Net income (Profit for the year)/total assets 17 Return on Equity = Net income (profit for the year)/Equity 18 Days of Working Capital = ((inventory + trade receivables) - trade payables)/(Revenue/365) 19 Cash Conversion Efficiency = Operating Activities cash flow/Revenue 20 Cash Conversion Cycle = Inventory conversion period + receivables conversion period - trade deferral period 21