Oceanview Marine Company Ratio Analyses December 31, 2015 PERCENT INDUSTRY Unadjusted 1231/2015 1231/2014 CHANGE CHANGE AVERAGE LIQUIDITY RATIOS: Current ratio 2.31 2.49-0.18-7.23% 0.42 0.40 16.05 17.78-1.73-9.73% 1.53 currest assets/ current liabilitics Quick ratio 002 5.00% 0.43 (current assets-inventory)/current liabilities net sales et ending receivables net ending receivables/(net sales / 365) cost of sales/average inventory Sales/Reccivables 20.29 Number of days sales in A/R 17.99 Inventory turnover 141 PROFITABILITY/PERFORMANCE RATIOS Gross profit margin (%) gross profit / net sales Income before taxes/Owners' equity net income before taxes / total owners' equity 0.06 0.04 19.07 1.32 2.18 Income before taxes /Total assets 0.06 44.29 1.54 net income before taxes/total assets 0.04 0.02 50.00% 6.96 18.64% 0.05 3.36% 2.82 2.59 023 8.88% Sales /Long-term assets net salesct long-term assets 4429 3733 37.33 Sales/Total assets net sales / total assets 1.49 Sales /Working capital net sales/(current assets-current liabilities) SOLVENCY RATIOS: Owners' Equity/Total assets total stockholders' equity / total assets Long-term assets/Owners' equity net long-term assets/ total stockholders' equity Current liabilities/Owners equity current liabilities/total stockholders' equity 0.56 0.59-0.03-5.08% 0.31 0.06 0.07-0.01-14.29% 0.47 Total Liabilities/Owners' equity 1.13 total liabilities/total stockholders' equity 2.03 Current workpapers-audit planning Page 6