1. Prepare the following ratios for Mikes Manufacturing for 2014, 2015, 2016, & 2017:

1. Current Ratio
2. Quick Ratio
3. Inventory Turnover
4. Debt to Equity
5. Gross Profit Margin
6. Return on Assets
7. Return on Equity

2. What positive/negative trends do you see from the ratios?

3. What concerns would you have about Mikes Manufacturing from a finance perspective?

Income Statement
Mike's Manufacturing
	2014	2015		2016		2017
Sales	4,100	3,400		1,800		2,800
Total Sales	4,100	3,400		1,800		2,800
Expenses
Cost of Goods Sold	2,100	2,200		3,200		2,300
Selling & Admin	800	1,000		900		600
Total Expenses	2,900	3,200		4,100		2,900
Net Income Available
Common Shareholders	1,200	200		-2,300		-100
Balance Sheet
Mike's Manufacturing
			2014		2015		2016	2017
Current Assets
Cash			300		400		100	300
Accounts Receivable			200		300		100	300
Inventory			800		1,000		2,000	900
Total Current Assets			1,300		1,700		2,200	1,500
Long Term Assets
Plant & Equipment			3,000		3,000		2,000	4,000
Investments			700		1,300		1,100	0
Total Long Term Assets			3,700		4,300		3,100	4,000
Total Assets			5,000		6,000		5,300	5,500
Current Liabilities
Accounts Payable			200		200		700	300
Total Current Liabilities			200		200		700	300
Long Term Debt			2,000		2,000		2,000	3,000
Shareholder's Equity
Common Stock			2,000		2,000		2,000	2,000
Retained Earnings			1,000		2,000		1,300	500
Total Liabilities & Shareholder's Equity			5,000		6,000		5,300	5,500