Please help with questions 1-4

Calculations to the salutions as well.

working with Financial Statements 95 CHAPTER CASE Ratios and Financial Planning at S&S Air, Inc. hris Guthrie was recently hired by s&S Air, Inc., to the order is complete. In con- partial payment before the company with its financial planning and to trast, a commercial airplane may take one and one-half evaluate the company's performance. Chris graduated to two years to manufacture once the order is placed. from college five years a with a finance degree. He Mark and Todd have provided the following finan- has been employed in the finance department of a cial statements. Chris has gathered the industry ratios Fortune 500 company since then. for the light airplane manufacturing industry. s&s Air was founded 10 years ago by friends Mark sexton and Todd Story. The company has manufactured S&S AIR, INC. and sold light airplanes over this period, and the com- 2016 Income Statement products have received high reviews for safety panys and reliability. The company has a niche market in that it Sales $24.092,400 Cost of goods sold 17,982,000 sells primarily to individuals who own and fly their own 2,878.800 other expenses airplanes. The company has two models, the Birdie, 786,000 which sells for $53,000, and the Eagle, which sells for 2,445,600 EBIT $78,000. 434,400 While the company manufactures aircraft, its opera- 2,011,200 Taxable income 804,480 tions are different from commercial aircraft companies. Taxes (40% 1,206,720 S&S Air builds aircraft to order, By using prefabricated Net income $246.000 parts, the company is able to complete the manufacture Additions to retained 960,720 of an airplane in only five weeks. The company also re- ceives a deposit on each order, as well as another S&S AIR, INC. 2016 Balance Sheet Liabilities and Equity Current liabilities 858,816 438.048 1,735,680 1,841,616 Accounts receivable Total current liabilities 2,594.496 1,486,200 Total current assets 3,765,864 Shareholder equity $14,778,816 Net plant and Common stock 180,000 Retained $11.180.184 equipment $11.360.184 Total liabilities and equity $18,544,680 $18,544.680