Question: Dana Dairy Products Key Ratios __________________... Dana Dairy Products Key Ratios _________________________________________________________________ Dana Industry Average 2008 2009 _________________________________________________________________ Current Ratio 1.3 1.0 Quick Ratio 0.8 0.75 Average collection Period 23 days 30 days Inventory Turnover 21.7 19 Debt Ratio 64.7% 50% Times Interest Earned 4.8 5.5 Gross Profit Margin 13.6% 12.0% Net Profit Margin 1.0% 0.5% Return on total assets 2.9% 2.0% Return on Equity 8.2% 4.0% Income Statement Dana Dairy Products For the Year Ended December 31, 2009 _________________________________________________________________ Sales Revenue $100,000 Less: Cost of Goods Sold 87,000 Gross Profits $ 13,000 Less: Operating Expenses 11,000 Operating Profits $ 2,000 Less: Interest Expense 500 Net Profits Before Taxes $ 1,500 Less: Taxes (40%) 600 Net Profits After Taxes $ 900 Balance Sheet Dana Dairy Products December 31, 2009 ASSETS _________________________________________________________________ Cash $ 1,000 Accounts Receivable 8,900 Inventories 4,350 Total Current Assets $14,250 Gross Fixed Assets $35,000 Less: Accumulated Depreciation 13,250 Net Fixed Assets 21,750 Total Assets $36,000 LIABILITIES & STOCKHOLDERS EQUITY _________________________________________________________________ Accounts Payable $ 9,000 Accruals 6,675 -- Total Current Liabilities $15,675 Longterm Debts 4,125 Total Liabilities $19,800 Common Stock 1,000 Retained Earnings 15,200 -- Total Stockholders' Equity $16,200 - Total Liab. & S.E. $36,000 Evaluate the financial results of Dana Dairy Products for fiscal year end 2009 in the following areas; liquidity, activity, debt, profitability, and market.

A.

5

B.

43

C.

20

D.

25