Marcuss common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $.55 per share this year. It also provided the following data excerpts from this year's financial statements:

	Ending Balance	Beginning Balance
Cash	$35,000	$30,000
Accounts receivable	$60,000	$50,000
Inventory	$55,000	$60,000
Current assets	$150,000	$140,000
Total assets	$450,000	$460,000
Current liabilities	$60,000	$40,000
Total liabilities	$130,000	$120,000
Common stock, $1 par value	$120,000	$120,000
Total stockholders' equity	$320,000	$340,000
Total liabilities and stockholders' equity	$450,000	$460,000

	This Year
Sales (all on account)	$700,000
Cost of goods sold	$400,000
Gross Margin	$300,000
Net operating income	$140,000
Interest expense	$8,000
Net income	$92,400

Based on the information provided above, select one ratio (bullet) from each of the five categories (liquidity, asset management, debt management, profitability, market performance) for a total of five bullet calculations. Note: some bullets have two calculations. Complete both calculations as this will count as one ratio (bullet) of the five categories. Please do not select the first one in every category. Be sure to skip around within the ratios to provide for more analysis and discussion within the board.

To Do:

1. Name the ratio, provide the formula, then work out the calculations in detail, to provide your overall answer.

2. Then, evaluate the ratio. Is the amount high, low, good for the company, bad for the company etc.?

Liquidity

• What is the amount of working capital and current ratio at the end of this year?
• What is the acid-test ratio at the end of this year?

Asset management

• What is the accounts receivable turnover and the average collection period?
• What is the inventory turnover and the average sale period?
• What is the company's operating cycle?
• What is the total asset turnover?

Debt management

• What is the times interest earned ratio?
• What is the debt-to-equity ratio at the end of this year?
• What is the equity multiplier?

Profitability

• What is the return on total assets (assuming a 30% tax rate)?
• What is the return on equity?

Market performance

• What is the earnings per share?
• What is the price-earnings ratio?
• What is the dividend payout ratio and the dividend yield ratio?
• What is the book value per share at the end of this year?