sets

Cash

$ 72,000

Accounts Receivable

$ 439,000

Inventories

$ 694,000

Total Current Assets

$ 1,205,000

Fixed Assets

$ 631,000

Total Assets

$ 1,836,000

Liabilities & Equity

Accounts

Payable

$ 332,000

Notes Payable

$ 100,000

Accruals

$ 170,000

Total Current Liabilities

$ 602,000

Long Term Debt

$ 404,290

Common Stock

$ 575,000

Retained Earnings

$ 254,710

Total Liabilities & equity

$ 1,836,000

Lee Corporation Income Statement at December.31 201

9

Sales

$ 6,350,000

Cost of Goods Sold

$ 5,270,000

Selling, General & Administration

Expenses

$ 500,000

Depreciation

$ 240,000

Earnings before Taxes (EBT)

$ 340,000

Taxes (30%)

$ 102,000

Net Income

$ 238,000

Per Share Data

EPS

$ 9.52

Cash Dividends per share

$ 1.90

Price/Earnings Ratio

5.01

Stock Price

$ 47.60

Number of shares

Outstanding

25,000

Ratio Analysis

201

9

Industry Avg

Current Ratio

2.7

Quick Ratio

1.0

Inventory Turnover

7.0

Days Sales Outstanding

32 Days

Fixed Asset Turnover

13.0

Total Asset Turnover

2.6

Return on Assets

9.1%

Return on Equity

18.2%

Debt Ratio

50.0%

Profit Margin

3.5%

Price/Earnings Ratio

6.0

Price/Cash Flow Ratio

3.5

A.

Calculate Lees forecasted ratios, compare them with the industry average, and comment

on Lees projected strengths and weaknesses.

Quick Ratio:

Current Ratio:

Inventory Turnover:

Days Sales Outstanding:

Fixed Asset Turnover:

Total Asset

Turnover:

Return on Assets:

Return on Equity:

Debt Ratio:

Profit Margin on Sales:

Price/Earnings Ratio:

Price/Cash Flow Rati