RATIO ANALYSIS - Calculate in 2004 and 2005 the following ratios:

Liquidity ratios

Current Ratio

Quick Ratio

Asset Management ratios

Inventory Turnover

Days Sales Outstanding

Fixed Asset

Turnover Total

Asset Turnover

Debt Management ratios

Debt Ratio

Times Interest Earned

EBITDA

Coverage Ratio

Profitability ratios

Profit Margin

Basic Earning Power

Return on Assets

Return on Equity

Market Value ratios

Price-to Earnings Ratio

Price-to-Cash Flow Ratio

Market-to-Book Ratio

Chapter 4. Analysis of Financial Statements This spreadsheet model sets up common size balance sheets and income statement for Allied (2004 and 2005 statements) and conducts a full ratio analysis of Allied's financial statements Common size balance sheets and income statements allow you to see the values of various financial statement accounts relative to total assets or sales, respectively Common size statements are a good first look at financial statement analysis, which is extended by ratio analysis. PUT DATASECTION: Historical Data Used in the Analysis 2005 2004 Year-end stock price Shares outstanding (in millions) Tax rate 40% 10.0% 10.3% Lease payments ($M) COMMON SZE BALANCE SHEETS Allied Food Products -December 3 n millions of dollars) COMMON SIZE 2005 2004 2005 2004 Assets Cash and equivalents 0 0.50% 4.76% Accounts receivable 375 315 8.75% 8.75% nventories 615 415 30.75% 24.70% Total current assets Net plant and equipment 2,000 Total assets 680 00.00 00.00% Liabilities and equity Accounts payabl 60 300% 1.79% Notes payable 110 5.50% 357% Accruals 140 130 00 7.74% Total current liabilities Long-term bonds. Total debt Common stock (50M shares Retained earnings 940 880 47.00% 52.38% Total common equity Total liabilities and equity $2,000 680 00.00% 00.00% NCOME STATEMENTS Allied Food Products Years Ending December 3 (in millions of dollars) COMMON SIZE et sales 3,000.0 2,850.0 00.00% 00.00% operating costs except depr n 2,616.2 2,497.0 87.21% 82.61% EBITDA Depreciation operating income (EB ess interest Earnings before (EBT) Taxes Net Income 7.5 21.8 3.92% 4.27% Common dividends Addition to retained earnings S60.0 $68.8 PER-SHARE DATA Earnings per share (EPs) $2.35 $2.44 Dividends per share (DPS) 15 $1.06 $18.80 $17.60 Book value per share (BVPS) Cash Flow Per Share (CFPS) $4.35 $4.24 SUMMARY DATA Relating to operating Performance and Cash Flow Net operating working capital (NOWC) Total operating capital $1,800.0 $1,520.0 $217.5 $211.8 et Cash Flow (NCF) NOPA) $170.3 $157.8 Operating Cash Flow (ocF) $270.3 $247.8 ($109.7) Free Cash Flow (FCF) NIA ($9.7) $1.2 Economic Value Added, EVA (SM) Market Value Added, MVA ($M) $210.0 $420.0