Perform the following Ratios for the company from 20X2 to 20X6 (See Appendix 2, Table 3). Input your formulas in Table 3 in Excel Spreadsheet (16 pts.). Comment on your findings particularly with respect to any anomalies (10 pts.). A. Gross Margin B. Net Profit Margin C. Asset Turnover D. Accounts Receivable Turnover E. Working capital F. Current Ratio G. Quick Ratio H. Debt Ratio (Debt to Asset)

Appendix 1: Statements of Income 20X1 20X2 20X3 20X4 20X5 20X6 Net sales 1,408,997 1,903,788 3,398,777 6,262,582 11,613,037 12,250,073 Cost of sales 1,132,148 1,318,603 2,727,424 3,874,442 4,312,779 3,867,373 Gross profit 276,849 585,185 671,353 2,388, 140 7,300,258 8,382,700 Selling & Marketing 799,486 1,001,529 1,049,381 1,900,984 2,492, 172 1,714,501 General & Admin expenses 3,317,128 3,257,546 3,804,200 6,467,306 7,537,444 7,539,311 R & D 316,941 214,287 196,600 Total operating expenses 4,1 16,614 4,259,075 4,853,581 8,685,231 10,243,903 9,450,412 Operating income (loss) (3,839,765) (3,673,890) (4,182,228) (6,297,091) (2,943,645) (1,067,712) Other income (expense) Interest Income 67,768 53,835 137,253 159,461 57,256 Interest expense (590,970) (397,674) (686,315) (940,410) (2,705,835) (1,320,934) Other 6,712 21,122 40,605 30,280 (7,952) 4,523 Write-off accrued license fees 283,500 Write-off Notes Receivable (500,000) (1,291,636) Finance related expense (2,286.075) Net income (Loss) $ (4.356,255) $ (3,996,607) $ (4,407,185) $ (7,547,760) $ (5,600,176) $ (5,961,834) Basic & Diluted EPS (0.04) (0.04) (0.03) (0.04) (1.56) (0.86) Additional Information Depreciation & Amort. Expense 421,542 475,542 571,527 943.473 1,026,805 852,378Appendix 1: Balance Sheet 20X2 20X3 20X4 20X5 20X6 ASSETS Current assets: Cash and cash equivalents 1,661,213 1,522,922 1, 186,939 610,736 29,822 Accounts receivable, net 269,566 568,811 956.710 4,432.854 796.487 Prepaid expenses & Other assets 375,966 972,256 308,065 739,013 344,729 Notes receivable - related parties 37,500 Notes receivable 1,231.474 901.728 455.458 177.600 405.000 Total current assets 3,538,219 4,003,217 2,907,172 5,960,203 1,576,038 Property, plant, and equipment, net 1,301,468 2,475,080 3,000,651 2,603,483 1,941,750 Security deposits 97,748 1,877,614 Notes receivable - related parties 9,722 Other Assets 735.869 1,295.378 180.646 275.413 Total Assets $ 4,947,157 7,214,166 $ 7,203.201 8,744.332 5,670,815 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 1,177,014 1,222,801 2,032,557 1,858,486 1,910,665 Accrued expenses 433,942 458,452 232,169 222,633 2,549,593 Notes payable 293.900 1,671,819 1,518,739 2,720,006 153,221 Notes payable - related party 211,867 250,000 Deferred Revenue 124,459 100.349 58,244 78.387 28,657 Current portion of capital lease 142,172 934.594 597,933 187,155 46,966 Convertible notes payable 10.000 10.000 1.383.440 1.474.775 Total current liabilities 2,393,354 4,648,015 5,823,082 5,066,667 6,163,877 Long-term notes payable 225,509 206,576 16,145 10,129 Convertible notes payable 2165793 Capital lease - long term 202.222 336.158 231.358 46.691 Total liabilities 2,595,576 5,209,682 8,426,809 5,129,503 6,174,006 Stockholders' equity Capital Stock 20,634,583 24,694,671 29,014.339 39,452,952 41,296, 766 Retained Earnings (Accum. Deficits) (18.283,000) (22.690,187) (30,237.947) (35.838,123) (41.799.957) Total stockholders' equity 2.351.583 2.004.484 (1.223.608) 3.614.829 (503.191) Total liabilities and stockholders' equity $ 4,947,159 S 7,214,166 $ 7,203,201 $ 8,744,332 $ 5,670,815Appendix 2 - Template Table 4: M-Score Worksheet 20X2 20X3 20X4 20X5 20X6 Receivables/Net Sales (see Note 1) Gross profit/Sales 1-(Current assets + PP&E)/Total Assets Sales Revenue Depreciation/(Depreciation + Net PPE) Selling, General & Admin/Sales (see Note 2) Total Liabilities/Total Assets TATA score steps Changes in Current assets N/A Changes in Cash and cash equivalents N/A Changes in Current liabilities N/A Changes in Current portion of Long-Term Debt (See Note 3 & Note 4) N/A Depreciation & Amortization N/A Numerator N/A Total Assets N/A TATA Score N/A M-Score Ratios Formula 1 DSRI [(CY Receivables/CY Net Sales)][(PY Receivables/PY Net Sales)] N/A GMI [(PY Gross Margin/PY Sales)]/[(CY Gross Margin/CY Sales)] N/A w t AOI [1-(CY Current assets + CY PP&E)/CY Total Assets][1-(PY Current assets + PY PP&E)/PY Total Assets] N/A 4 SGI CY Sales/PY Sales N/A 5 DEPI [PY Depreciation/(PY Depreciation + PY Net PPE)][CY Depreciation/(CY Depreciation + CY Net PPE)] N/A 6 SGAI (CY SG&A expense/CY Sales)]/[(PY SG&A expense/PY Sales)] (see Note 2) N/A 7 LVGI [(CY Total Liabilities/CY Total Assets)][(PY Total Liabilities/PY Total Assets)] N/A 8 TATA N/A M-Score N/A > -1.78? Input "Yes" or "No" > -1.78 N/A Fraud Occurring Based on M-Score? Indicate Yes/No N/A Denote: CY - 1; PY - 1-1; Where CY - Current Year and PY- Previous Year N/A = Do not need to calculate Note 1: Receivables = Accounts Receivables Note 2: Exclude R& D in the SG&A expense calculation Note 3: Exclude current portion of capital Lease in the Current Portion of Long-Term Debt calculations Note 4: Debt = Notes Payable 8