Required:

2. To help assess the companys asset management, calculate the following for 2017:

c. Inventory turnover

d. Average sale period

e. Operating cycle

3. To help assess the companys debt management, calculate the following for 2017:

a. Times interest earned ratio

b. Equity multiplier

4. To help assess the companys profitability, calculate the following for 2017:

a. Net profit margin percentage

b. Return on equity

5. For each of the measures and ratios that you computed in requirements 1 through 4, indicate whether, generally speaking, management would prefer to see it increase or decrease over time.

Op. Finished goods inv.		1500
OP. raw material inv.		4500
		2017				2018
Particulars	UOM	Q1	Q2	Q3	Q4	Q1
Sales Unit	unit	12,000	37,000	15,000	25,000	13,000
Sales Price	$ per unit	32	32	32	32
Sales Value	$	384,000	1,184,000	480,000	800,000
Cash received	$	288,000	888,000	360,000	600,000
To be received next quarter (Debtors)	$	96,000	296,000	120,000	200,000
Finished goods Inventory	unit	1,800	5,550	2,250	3,750
Raw material Inventory closing	unit	4,075	1,170	2,650	5,000
Production	unit	12,300	40,750	11,700	26,500	50,000
Raw material used	unit	43,050	142,625	40,950	92,750
Raw material purchase	unit	42,625	139,720	42,430	95,100
Raw Material Value	$	127,875	419,160	127,290	285,300
Cash paid	$	89,513	293,412	89,103	199,710
Creditors	$	38,363	125,748	38,187	85,590
Labour cost	$ per hour	18	18	18	18
Labour cost- Cash paid	$	54,000	166,500	67,500	112,500
VMO Cash Paid	$	9,000	27,750	11,250	18,750
FMO Cash	$	130,000	130,000	130,000	130,000
FMO Dep	$	20,000	20,000	20,000	20,000
Selling and admin	$	15,000	46,250	18,750	31,250
Fixed selling exp Cash	$	109,000	109,000	109,000	109,000
Fixed selling depreciation	$	8,000	8,000	8,000	8,000
Dividend	$	15,000	15,000	15,000	15,000
Cash Balance	$	(133,513)	100,088	(80,603)	(16,210)
Minimum cash	$	30,000	30,000	30,000	30,000
Loan		(163,513)	70,088	(110,603)	(46,210)
Interest		(4,905.38)	(5,052.54)	(7,622.20)	(8,108.50)
Balance		(168,417.88)	(173,470.41)	(254,073.41)	(270,283.41)
Raw material Value at year end					14,415.00	2925	11490
Finished goods value at year end					30,000.00
						rate	8