Quiz RATIOS

Table1

Income statement	2009($)	2010($)
Value of farm production	470622	511535
Depreciation expenses	29300	33300
interest expense	34517	29280
Tax expenses	9828	18101
Net income from operation	93,360	12,0260
Balance sheet at the end of the year	2009	2010
Total current asset	258,642	291,775
Non- current asset
Farm total Assets	101,8342	107,0985
Current liabilities	212407	196679
Farm total liabilities	512374	480999
Farm equity	505968	589986

Write down each formula and show all your work.

1. a. Calculate ROA for the year 2010.

b. What does this mean for this business?

2. A. Calculate ROE for the year 2010.

b. What does this mean for this business?

3. A. Calculate the Profit margin for the year 2010.

B. What does this mean for this business?

4. a. Calculate the Cost of farm debt for the year 2010.

1. What does this mean for this business?

4. a. Calculate the working capital for the year 2010.

6. a. Calculate current ratio for the year 2010.

B. What does this mean for this business?

7. a. Calculate leverage ratio for the year 2010.

B. What does this mean for this business?

8. a. Calculate Asset turnover ratio for the year 2010.

B. What does this mean for this business?

9. Calculate EBITDA from the information Table1