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Sales -COGS Gross Profits -Operating Expenses Operating Profit -Interest EBT -Taxes EAT $5 million -4.2 million There are 50,000 shares of c.s. outstanding 800,000 -350,000

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Sales -COGS Gross Profits -Operating Expenses Operating Profit -Interest EBT -Taxes EAT $5 million -4.2 million There are 50,000 shares of c.s. outstanding 800,000 -350,000 450,000 -125,000 325,000 -97,500 227,500 Balance Sheet Cash Acct. Rec. Inventory Fixed Assets $100,000 Current liabilities $480,000 $300,000 Bonds $1.5 million $800,000 Common stock $500,000 $2 million Paid-in Capital $600,000 $3.2 million Retained Earnings $120,000 Total Liabilities & Stockholders Equity $3.2 million Total Assets 1. Based on the financial statements, calculate: A. Current ratio B. Debt/equity ratio C. Times interest earned D. ROE E. Book value per share F. Inventory turnover G. Net working capital H. EPS

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