INSTRUCTIONS: Analyze the firm's performance from both time-series and cross-sectional points of view using the key financial ratios provided.

BALANCE SHEET 2015

Assets

Cash and Equivalents $237,500.00

Accounts Receivable $592,500.00

Inventory $607,500.00

Total Current Assets $1,437,500.00

Gross Fixed Assets $1,250,000.00

Less Accumulated Depreciation $187,500.00

Net Fixed Assets $1,062,000.00

Total Assets $2,500,000.00

Liabilities and Equity

Current Liabilities

Accounts Payable $222,500.00

Notes Payable $422,500.00

Accruals $217,500.00

Total Current Liabilities $862,500.00

Long Term Debt $470,000.00

Total Liabilities $1,332,500.00

Stockholder's Equity

Common Stock $637,500.00

Retained Earnings $530,000.00

Total Stockholders Equity $1,167,500.00

Total Liabilities & Equity $2,500,000.00

INCOME STATEMENT

Sales Revenue $3,360,000.00

Cost of Sales $2,724,960.00

Gross Profits $635,040.00

Less: Operating Expenses

Selling Expense $251,200.00

General S&A $163,200.00

Depreciation $48,000.00

Total Operating Expenses $462,400.00

Total Operating Profit $172,640.00

Less: Interest Expense $31,200.00

Net Profits Before Taxes $141,440.00

Less Taxes (40%) $56,576.00

Net Profits After Taxes $84,864.00

LIQUIDITY RATIOS 2013 2014 2015 Industry Average

Current Ratio 1.5 1.7 1.6

Quick Ratio 0.9 1 0.9

Operating Cash Flow n/a n/a

ASSET MGMT RATIOS 2013 2014 2015 Industry Average

Inventory Turnover 6 5 8.4

Average Collection Prd 40 50 40

Fixed Asset Turnover n/a n/a

Total Asset Turnover 1.5 1.5 1.75

DEBT MGMT RATIOS 2013 2014 2015 Industry Average

Debt Ratio 60% 56% 50%

Times Interest Earned 2.5 3.5 4

PROFITABILITY RATIOS 2013 2014 2015 Industry Average

Gross Profit Margin 20% 19.70% 20%

Operating Profit Margin 4.70% 4.80% 6%

Net Profit Margin 2% 2.30% 3%

Return on Investment 3.00% 3.50% 5.25%

Return on Equity 7.50% 7.95% 10.50%

End of worksheet

performance from both time-series and cross-sectional points of view using the key financial ratios provided.