SLO 1.3

Instructions: Analyze the attached Balance Sheet and Income statement, calculating and interpreting the following ratios, and making a conclusion on the financial position of the company addressing the 3 financial categories.

Profitability Ratios (in %): Return on equity, Return on assets, Return on invested capital, Profit margin, Gross margin

Turnover-Control Ratios; Asset turnover, Fixed-asset turnover, Inventory turnover, Collection period (days), Days' sales in cash, Payables period

Leverage and Liquidity Ratios: Assets to equity, Debt to assets, Debt to equity, Times interest earned, Current ratio, Acid test ratio.