Part 1	Calculate the following ratios for the company for This Year and Last Year. For any ratios that
	require an average, use the closing balance for the year.
		This Year	Last Year	Ind. Av.
	Liquidity
	Current Ratio			1.85
	Working Capital			not available
	Profitability
	Gross Profit Margin			32%
	Net Profit Margin			8.50%
	Return On Equity			38.25%
	Return On Assets			17.46%
	Asset Turnover			2.05
	Operations Management
	Inventory Turnover Ratio			8.27
	Accounts Receivable Turnover Ratio			11.25
	Solvency
	Debt-to-Equity Ratio			not available
	Times Interest Earned			9.33
	Debt-to-Total-Assets Ratio			0.54

MODERN BUILDING SUPPLY Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Temporary investments Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Shareholders' Equity Liabilities: Current liabilities Bonds payable, 12% Total liabilities Shareholders' equity: Preferred shares, 4,000, $4 no par Common shares, 50,000 Retained earnings Total shareholders' equity Total liabilities and shareholders' equity MODERN BUILDING SUPPLY Comparative Income Statement and Reconciliation of Retained Earnings Sales Cost of goods sold Gross margin Selling and administrative expenses Operating income Interest expense Net income before taxes Income taxes (40\%) Net income Dividends paid: Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year MODERN BUILDING SUPPLY Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Temporary investments Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Shareholders' Equity Liabilities: Current liabilities Bonds payable, 12% Total liabilities Shareholders' equity: Preferred shares, 4,000, $4 no par Common shares, 50,000 Retained earnings Total shareholders' equity Total liabilities and shareholders' equity MODERN BUILDING SUPPLY Comparative Income Statement and Reconciliation of Retained Earnings Sales Cost of goods sold Gross margin Selling and administrative expenses Operating income Interest expense Net income before taxes Income taxes (40\%) Net income Dividends paid: Preferred dividends Common dividends Total dividends paid Net income retained Retained earnings, beginning of year Retained earnings, end of year