Question 1

Lake of Egypt Marina Inc, Balance Sheet as of December 31 2008. (In millions of dollars)

Current Assets	$ $	$
Cash and Marketable Securities			75
Accounts Receivable				115
Inventory				200
Fixed Assets				390
Plant & Equipment		580
Less Depreciation		110	470
Other long term assets			50	520
Current Liabilities				910
Accrued wages & taxes			40
Accounts payable			90
Notes payable			80	210
Long-term debt Stockholders equity				300
Preferred stock (5 million shares)		5
Common stock & paid in surplus		65
Retained earnings		330	400
			910

Lake of Egypt Marina Inc,

Income Statement

for Year ending December 31 2008.

(In millions of dollars)

$

Net Sales (all credit) 515

Less Cost of Goods Sold 260

Gross Income 255

Less depreciation 22

Earnings Before Interest and Tax 233

Less interest 33

Earnings before tax 230

Less Taxes 57

Net Income 143

Less preference stock dividends 5

Income available to common stock holders 138

Less common stock dividends 65

Addition to retained earnings 73

The market price for Lake of Egypt Marina Inc common shares was $14.75 in 2008.

Required:

1. Calculate the following ratios for 2008:

I. Current ratio

ii.Quick ratio

iii average collection period

iv Average payment period

v. Profit margin

vi Total Debt to equity

vii Earnings per share

viii Price Earnings ratio