Part B - Understanding Financial Statements(30 Marks) BMC CORPORATION INCOME STATEMENT FISCAL YEAR ENDING 12/31/2004 (DOLLARS IN THOUSANDS)Net Sales $1025 Cost of Goods Sold682 Gross Profit Margin 343 Depreciation 31 Operating Expense 103 Administrative Expense127 Operating Profit 82 Interest27 Profit Before Tax 55 Taxes17 Net Income $38

BMC CORPORATION BALANCE SHEET FISCAL YEAR ENDING 12/31/2004 (DOLLARS IN THOUSANDS)AssetsLiabilitiesCash $61 Notes payable $223 Accts rec 286 Accounts payable 152 Inventory354 Accruals32 Ttl cur assets 701 Total current liabilities 407 Net fixed assets802 Long term debt 306Common stock ($1.50 par) 102Paid in surplus 226Retained earnings462Total liabilities andTotal assets $1503 Stockholders' equity $1503

Calculate and comment of each of the following ratios: i. Current ratio ii. Quick or acid-test ratio iii. Average payment period iv. Total Assets Turnover v. Fixed Assets Turnover vi. Average Collection Period vii. Inventory Turnover viii. Profit Margin ix. Return on Equity x. Debt Ratio