See below for the Financial Statements for GPB Incorporated:

 

GPB Incorporated Income Statement

For Year Ended December 31,2023

Sales	$800,000
CoGS	650,000
Gross Margin	$150,000
Operating Costs	115,000
NetOperatingIncome	$35,000
InterestExpense	10,000
IncomeBeforeTaxes	$25,000
Taxes	5,000
NetIncome	$20,000

GPBIncorporated Balance Sheet December31,2023

ASSETS

CurrentAssets
Cash	$100,000
ShortTermInvestments	40,000
AccountsReceivable(net)	40,000
Inventory	60,000
TotalCurrentAssets		$240,000
Property, Plant , and Equipment
Equipment	$360,000
AccumulatedDep'n	125,000
NetPPE		235,000
TOTALASSETS		$475,000
LIABILITIES
CurrentLiabilities
AccountsPayable	$80,000
WagesPayable	25,000
ShortTermLoanPayable	55,000
TotalCurrentLiabilities		$160,000
Non-CurrentLiabilities BondPayable		150,000
TOTALLIABILITIES		$310,000
EQUITY
CommonShares	$50,000
RetainedEarnings	115,000
TOTALEQUITY		165,000
TOTALLIABILITIESANDEQUITY		$475,000

NOTE:ASSUMEANYAVERAGESEQUALTHEENDINGBALANCEFORTHATACCOUNT

MarketValueofSharesatYear-End= $25.00

DividendsDeclaredandPaidinYear= $1.00

#ofCommonSharesOutstanding= 10,000

REQUIRED:

Prepare the following Financial Statement Ratios and provide a 1 sentence explanation of the meaning of each ratio:

1. EPS
2. P/ERatio
3. DividendYield
4. CurrentRatio
5. InventoryTurnover

AnalysisofResults

1. If the Industry Average for Inventory Turnover is 12x, are we doing better or worse? Explain.