Ratio analysis

Asset Turnover = Sales / Average total assets Profit Margin = Net income + ((1 Tax rate) Interest expense) + Minority interest / Sales Return On Assets = Asset turnover x profit margin common earnings leverage = Net income Preferred dividends / Net income + ((1 Tax rate) Interest expense) + Minority interest capital structure leverage = Average total assets / Average common shareholders equity adjusted financial leverage = total debt / shareholders equity return on equity = net income - pref dividends / average common shareholders equity

LIMA LIMITED Statements of Profit or Loss For Years Ended 30 June (Dollars in Thousands Except Earnings per Share) 20X2 Net sales $ 16,734 Cost of sales 7,144 Gross profit 9,590 Selling, general and administrative expenses 5,758 Other expenses (income), net 9 Operating profit 3,841 Net interest expense 52 Profit before income tax 3,789 Income tax expense 1,235 Net profit $ 2,554 Earnings per share $ 51.08 20X1 $ 15,564 6,360 9,204 5,414 (301) 3,489 59 3,430 1,117 $ 2,313 $ 46.26 LIMA LIMITED Balance Sheets As at 30 June (Dollars in Thousands) 20X2 20X1 $ 878 1,675 1,327 522 4,402 490 1,610 1,222 408 3,730 Assets Current assets Cash, cash equivalents and marketable securities Receivables (net of allowance of $49 and $53 respectively) Inventories Other assets Current assets Non-current assets Property, plant and equipment, net Goodwill Other intangible assets, net Deferred tax asset Other assets Non-current assets Total assets 3,668 2,657 1,341 115 541 8,322 12,724 3,693 2,362 831 84 472 7,442 11,172 $ $ 20X2 20X1 $ $ 1,244 34 346 392 1,700 3,716 1,165 48 561 272 1,682 3,728 2,815 Liabilities and shareholders' equity Current liabilities Accounts payable Short-term debt Current portion of long-term debt Current tax liability Accrued expenses Current liabilities Non-current liabilities Long-term debt Deferred tax liability Other liabilities Non-current liabilities Total liabilities Shareholders' equity Paid-up capital: Ordinary shares ($10 per share) Retained earnings Reserves Shareholders' equity Total liabilities and shareholders' equity 108 4,430 252 1,785 6,467 10,183 1,704 4,627 8,355 500 1,891 150 2,541 12,724 500 2,187 130 2,817 11,172 $ $