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Refer to Exhibits A and B below to answer the questions that follow. Exhibit A Jordan Corporation Balance Sheet September 30, 2015 Assets Current Assets

Refer to Exhibits A and B below to answer the questions that follow.

Exhibit A Jordan Corporation Balance Sheet September 30, 2015

Assets

Current Assets (in dollars)

Cash: 500,000

Accounts receivable: 600,000

Inventory: 950,000

Prepaid expenses: 50,000

Total Current Assets:2,100,000

Property, Plant and Equipment (in dollars)

Land: 250,000

Buildings, net of depreciation: 300,000

Equipment, net of depreciation: 800,000

Total Property, Plant and Equipment: 1,350,000

Total Assets: 3,450,000

Liabilities (in dollars)

Current Liabilities

Accounts payable: 700,000

Wages payable: 200,000

Interest payable: 25,000

Total Current Liabilities: 925,000

Long Term Liabilities

Notes Payable: 500,000

Bonds Payable: 450,000

Long Term Liabilities: 950,000

Total Liabilities: 1,875,000

Shareholders' Equity (in dollars)

Common stock: 500,000

Additional paid in capital: 100,000

Retained earnings: 975,000

Total Shareholder equity: 1,575,000

Total Liabilities and Equity: 3,450,000

Exhibit B Jordan Corporation Statement of Operations Year Ended September 30, 2015

All figures in dollars

Sales: 6,000,000

Cost of goods sold: 3,600,000

Gross margin: 2,400,000

Selling and administrative expenses: 1,950,000

Operating income: 450,000

Interest expense: 50,000

Income before taxes: 400,000

Income taxes: 100,000

Net income: 300,000

Classify each of the above below as a liquidity, asset management, financial leverage or profitability measure.

Quick (Acid Test) ratio

Current ratio

Accounts payable period

Collection period

Inventory turnover

Total debt to total assets

Interest coverage

Operating income margin

Net income margin

Return on assets

Return on equity

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