Mike's Corporation data regarding the store's operations follow:

Sales are budgeted at $380,000 for November, $400,000 for December, and $370,000 for January.

Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible.

The cost of goods sold is 65% of sales.

The company desires an ending merchandise inventory equal to 60% of the cost of goods sold in the following month.

Payment for merchandise is made in the month following the purchase.

Other monthly expenses to be paid in cash are $22,000.

Monthly depreciation is $18,000. Ignore taxes.

Balance Sheet

October 31

Assets

Cash........................ $16,000

Accounts Receivable (net of allowance for uncollectible accounts)....................... $74,000

Merchandise Inventory......................$140,400

Property, Plant and Equipment (net of $500,000 accumulated depreciation)..........$1,066,000

Total Assets................$1,296,400

Liabilities and Stockholders' Equity

Accounts Payable............................$240,000

Common Stock.................................$640,000

Retained Earnings............................$416,400

Total Liabilities and Stockholders' Equity...........$1,296,400

Note that Parts 1, 2, and 3 relate to the above data for Mike's Corporation. Part 4 is based on information for the Patel Corporation

Start a cash budget for November and December. To accomplish this, develop

these for November and December:

a) Schedule of expected cash collections

b) Merchandise purchases budget

c) Schedule of expected cash disbursements for merchandise purchases

d) Cash budget

2. Develop a budgeted income statements for November and December.

3. develop a budgeted balance sheet for the end of December.

The Patel Corporation reported the following data for the year ended December 31:

Net Sales Revenue $400,000

Net Income $25,000

Interest Expense (net of tax) $3,000

Average Total Assets $200,000

Average Stockholders' Equity $160,000

Average Net Fixed Assets $100,000

Average Shares of Common Stock Outstanding $10,000

Market Value Per Share $16.00

For each of the below, develop the formula, the ratio, and elaborate what the ratio means in the context of the Patel Corporation. **USING EXCEL**

A. Net Profit Margin

B. Return on Total Assets

C. Return on Equity

D. Earnings Per Share

E. Price-Earnings Ratio

F. Debt-to-Equity Ratio

G. Fixed Asset Turnover Ratio