Richard's corporation's data regarding the store's operations follow:

Sales are budgeted at $380,000 for November, $400,000 for December, and $370,000 for January.

Collections are expected to be 75% in the month of sale, 20% in the month following the sale, and 5% uncollectible.

The cost of goods sold is 65% of sales.

The company desires an ending merchandise inventory equal to 60% of the cost of goods sold in the following month.

Payment for merchandise is made in the month following the purchase.

Other monthly expenses to be paid in cash are $22,000.

Monthly depreciation is $18,000. Ignore taxes.

Balance Sheet

October 31

Assets

Cash........................ $16,000

Accounts Receivable (net of allowance for uncollectible accounts)....................... $74,000

Merchandise Inventory......................$140,400

Property, Plant and Equipment (net of $500,000 accumulated depreciation)..........$1,066,000

Total Assets................$1,296,400

Liabilities and Stockholders' Equity

Accounts Payable............................$240,000

Common Stock.................................$640,000

Retained Earnings............................$416,400

Total Liabilities and Stockholders' Equity...........$1,296,400

Note that Parts 1, 2, and 3 relate to the above data for Richard's corporation. Part 4 is based on information for the Patel Corporation

Develop cash budget for November and December. To accomplish this, please develop of

these for November and December:

a) Schedule of expected cash collections

b) Merchandise purchases budget

c) Schedule of expected cash disbursements for merchandise purchases

d) Cash budget

2. Develop a budgeted income statements for November and December.

3. Develop a budgeted balance sheet for the end of December.

The Patel Corporation reported the following data for the year ended December 31:

Net Sales Revenue $400,000

Net Income $25,000

Interest Expense (net of tax) $3,000

Average Total Assets $200,000

Average Stockholders' Equity $160,000

Average Net Fixed Assets $100,000

Average Shares of Common Stock Outstanding $10,000

Market Value Per Share $16.00

For each of the below, include the formula, calculate the ratio, and elaborate what the ratio means in the context of the Patel Corporation.

A. Net Profit Margin

B. Return on Total Assets

C. Return on Equity

D. Earnings Per Share

E. Price-Earnings Ratio

F. Debt-to-Equity Ratio

G. Fixed Asset Turnover Ratio