Question #2 Analyzed the balance sheet shown below to illustrate how financial analysts evaluate balance sheets. Period Period Ending: Dec... Ending: Dec... % (in thousands US$) 31, 2004 31, 2005 Change ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Prepaid Expenses Deferred Income Taxes Total Current Assets 9,100 8,250 55,000 8,500 7 000 87,850 9,900 8,700 60,000 8,950 7.300 94.850 8.79% 5.45% 9.09% 5.29% 4.29% 7.97% Property, Plant & Equip Intangible Assets Total Assets LIABILITIES AND EQUITY 85,000 25.000 197.850 90,000 26,500 211.350 5.88% 6.00% 6.82% Current Portion of Long-term Debt Accounts Payable Other Current Liabilities Total Current Liabilities 1,500 35,000 8.000 14.500 1,600 37 000 8.550 47.150 6.67% 5.71% 6.88% 5.96% Long-term Debt Other Long-term Liabilities Total Liabilities 45,000 5.000 94.500 47,500 5,200 99,850 5.56% 4.00% 5.66% 103.350 111.500 7.89% Equity