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Problem 6-9 Consider the current and pro forma financial statements that follow: 2015 2016 Sales 200 220 Variable Costs 100 110 Fixed Costs 80 80

Problem 6-9

Consider the current and pro forma financial statements that follow:

2015

2016

Sales

200

220

Variable Costs

100

110

Fixed Costs

80

80

Net Income

20

30

Dividends

10

22

Current assets

120

132

Fixed Assets

200

200

Total Assets

320

332

Current Liabilities

40

44

Long-Term Debt

40

40

Common Stock

40

40

Retained Earnings

200

208

Total Liabilities and Equity

320

332

AFN = 0

Compute the following ratios for 2015 and 2016 (PLEASE SHOW WORK!)

2015

2016

Curret Ratio

Debt to Assets Ratio

Sales to Assests Ratio

Net Profit Margin

Return on Assets

Return on Equity

Comments on any trends revealed by your ratio analysis.

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