Oceanview Marine Company Ratio Analyses December 31, 2015 2-1 Unadjusted 12/31/2015 12/31/2014 CHANGE CHANGE AVERAGE PERCENT INDUSTRY QUIDITY RATIOS: urrent ratio current assets / current liabilities uick ratio (current assets- inventory)/current liabilities Sales / Receivables net sales / net ending receivables 2.31 2.49-0.18-7.23% 0.42 0.40 0.02 5.00% 16.05 17.78-1.73-9.73% 2029 1.53 0.43 Number of days sales in A/R net ending receivables /(net sales /365) er17.99 Inventory tunover cost of sales / average inventory 1.41 PROFITABILITY/PERFORMANCE RATIOS Gross profit margn (%) gross profit / net sales Income before taxes Owners' equity 23.83% net income before taxes total owners' equity net income before taxes / total assets net sales / net long-term assets net sales total assets 0.06 Income before taxes / Total assets Sales/Long-term assets Sales/Total assets Sales /Working capital 0.06 0.04 0.02 50.00% 0.04 44.29 37.33 6.96 18.64% 19.07 1.32 2.18 54 1.49 0.05 3.36% 2.82 net sales (current assets- current liabulities) SOLVENCY RATIOS Owners' Equity /Total assets 2.59 0.23 8.88% 0.56 0.59-003-5.08% 0.31 total stockholders" equity /total assets Long-term assets/Owners' equity 006 007-001-14.29% 0.47 nct long-torm assets/total stockholdern' equity Current liabilities/ Owners' equity 1.13 Total Liablities/Owners' equity total liabilitices/total stockholders" oquity Current workpapers- audit planning Page 6