Questions:

1) SciTronics had $ ------- of owners equity and earned $ --------- after taxes in 2008. Its return on equity was ------- % an improvement/deterioration from the --------- % earned in 2005.

2) Total assest turnover for SciTronics in 2008 can be calculated by dividing $ ----- into $-------- . The turnover improved/deteriorated from ---------- times in 2005 to -------- times in 2008.

3) SciTronics had $ ------- invested in accounts receivables at year end 2008. Its average sales per day were $ ------ during 2008 and its average collection period was ------ days. this represented an improvement/deterioration from the average collection period of -------- days in 2005.

4) SciTronics apparently needed $ ------ of inventory at year end 2008 to support its operations during 2008. Its activity during 2008 as measured by the cost of goods sold was $ ------- . It therefore had an inventory turn over of ------- times. This represented an improvement/deterioration from -------- times in 2005.

5) SciTronics had net fixed assest of $ ------- and sales of $ ------ in 2008. Its fixed asset turnover ratio in 2008 was --------- times, an improvement/deterioration from ------- times in 2005.

6) SciTronics ratio of total assests divided by owners equity increased/decreased from ------- at year end 2005 to ------ at year end 2008.

7) At year end 2008, SciTronics total liabilities were ------ % of its total assets, which compares with ------% in 2005.

8) The market velue of Scitronics equity was $175,000,000 at december 31, 2008. The total debt ration at market was ------ .

9) SciTronics earnings before interest and taxes (operating income) were $ ------ in 2008 and its interest charges were $--------- . Its times interest earned was ------ times. this represented an improvement/deterioration from the 2005 level of ------ times.

10) SciTronics owed its suppliers $ ------- at year end 2008. This represented --------- % of cost of goods sold and was an increase/decrease from ------- % at year end 2005. The company appears to be more/less prompt in paying its suppliers in 2008 than it was in 2005.

11) SciTronics held $ ------ of current assets at year end 2008 and owed $ ------- to creditors due to be paid within one year. Its current ration was -----------, an increase/decrease from the ratio of ---------- at year end 2005.

12) The quick ratio for SciTronics at year end 2008 was -------- ,an increase/decrease from the ratio of -------- at year end 2005.

Exhibit 1 SdTranics, Inc. Consolidated Income Statements 20052008 (s in thousands) 2008 2007 2006 2005 si $147,000 171,000 $205,000 $244,000 Sales 63,000 50,000 43.000 Cost of goods sold 70,000 42,000 121,000 04.000 Gross marg in 15,000 20,000 20,000 28,000 Research & development -29,000 -92,000 Sell, general & administrative 10,000 9,000 Operating income -2,000 -2,002 Interest expense 24,000 8,000 7,000 9,000 Profit before tax 10.000 2000 lancone tax. 4,000 s 5000 S 5,000 5,000 S14,000 Net income Exhibit 2 SaTronics, Inc. Consolidated BalanceSheet at December 31, 2005-2008 in thousands) 2005 2008 Cash S 9,000 10,000 S 15,000 18,000 Aocounts receivable 42,000 33,000 61,000 66,000 30,000 29,000 Inventories 28,000 other current assets 0,000 3,000 21,000 20,000 Total cument asses 82,000 104,00 127,000 133,000 et property &equipment 9.000 12,000 13,000 18,000 Other Total assets 93,000 si 18,000 $146,000 $159,000 Notes payable S 3.000 18.000 8,000 10,000 Accounts payable 5,000 6,000 7,000 6,000 Aoened expenses 13,000 21,000 28,000 3.00 4.000 4,000 21 (K00 40,000 40,000 48,000 Oder current liabilities Total currentliabilities Long-term senior debt 0 (XX) 9,000 8.000 7,000 20,000 20,000 Subordinated convertible debt 1,000 3,000 Other liabilities 7,000 owners' equity 65,000 71,000 85,000 Treasury stock owners' equity 61,000 65,000 11,000 75,000 Total liabilities and equity $93,000 $118,000 S146,000 $159,000