Refer to the information below for XYZ Corporation for the problems below.

Balance Sheet

2007 2008

Cash 9,000 500

A/R 12,500 16,000

Inventories 29,000 45,500

Total Current Assets 50,500 62,000

Land 20,000 26,000

Plant & Equipment 70,000 100,000

Less Accumulated Depreciation (28,000) (38,000)

Total Fixed Assets 62,000 88,000

Total Assets 112,500 150,000

Accounts Payable 6,500 17,000

Accrued Expenses 4,000 5,000

Short Term Bank Notes 17,000 47,000

Total Current Liabilities 27,500 69,000

Long-term Debt 28,750 22,950

Common Stock 31,500 31,500

Retained Earnings 24,750 26,450

Total Debt & Equity 112,500 150,000

Income Statement 2008

Sales 160,000

COGS 96,000

Gross Profit 64,000

Operating Expenses

Fixed Cash Operating Expenses 21,000

Variable Operating Expenses 16,000

Depreciation 10,000

Total Operating Expenses 47,000

Earnings before Interest & Taxes (NOI) 17,000

Interest Expense 6,100

Earnings Before Taxes 10,900

Income Tax 3,900

Net Income 7,000

Compute and EXPLAIN THE MEANING of the following ratios for the year 2008:

1. Current Ratio

2. Quick Ratio

3. Inventory Turnover

4. Total Asset Turnover

5. Debt Ratio

6. DSO

7. ROE

8. Operating Margin

9. Profit Margin

10. TIE