Sweet Candy Corp. has prepared the following financial statements:

Sweet Candy Corp.				Sweet Candy Corp.
Income Statement				Balance Sheet
For the Year Ended Dec. 31 2017				As of Dec. 31 2017
	2017	2016		Assets	2017	2016
Sales	3,074,000	2,567,000		Cash	431,000	339,000
Cost of Goods Sold	2,088,000	1,711,000		Accounts Receivable	503,000	365,000
Gross Profit	986,000	856,000		Inventories	289,000	300,000
Selling and G&A Expenses	294,000	295,000		Total Current Assets	1,223,000	1,004,000
Fixed Expenses	35,000	35,000		Gross Fixed Assets	4,669,000	4,322,000
Depreciation Expense	239,000	223,000		Accumulated Depreciation	2,295,000	2,056,000
EBIT	418,000	303,000		Net Fixed Assets	2,374,000	2,266,000
Interest Expense	93,000	91,000		Total Assets	3,597,000	3,270,000
Earnings Before Taxes	325,000	212,000		Liabilities and Owners' Equity
Taxes	94,000	64,000		Accounts Payable	382,000	270,000
Net Income	231,000	148,000		Short-term Notes Payable	79,000	99,000
				Accrued Expenses	159,000	114,000
				Total Current Liabilities	620,000	483,000
				Long-term Debt	1,023,000	967,000
				Total Liabilities	1,643,000	1,450,000
				Common Stock	819,000	808,000
				Retained Earnings	1,135,000	1,012,000
				Total Shareholder's Equity	1,954,000	1,820,000
				Total Liabilities and Owners' Equity	3,597,000	3,270,000

1. Set up a worksheet similar to the one in Exhibit 3-6, page 92, and calculate all of the ratios for Sweet Candy Corp.

A V 2.5 Sweet Candy Corp. Industry 2017 2 Ratios 2017 2016 Liquidity Ratios Analysis Un Am 4 Current R-tio 5 Quick Ratio 2.50% 0.602 Efficiency Ratios 7 Inventory Turnover Ratu 8 Accounts Receivable Turnover Ratio 9 Average Collection Period 10 Fixed Asset Turnover 11 Total Asset Turnover 6.50% 8.00 40.00 days 2.00x 2.00% 12 Leverage Ratios 13 Total Debt Ratio 14 Long-Term Debt Ratio 15 LTD to Total Capitalization 16 Debt to Equity 17 Long-Term Debt to Equity 18 19 Times Interest Earned 20 Cash Coverage Ratio 50.00% 20.00% 30.00% 0.90x 40.00% Coverage Ratios 2.50x 3.50x 21 Profitability Ratios 22 Gross Profit Margin 23 Operating Proft Margin 20.00% 7.00 KIND OF Profitability Ratios 21 22 Gross Profit Margin 23 Operating Proft Margin 24 Net Proft Margin 25 Return on Total Assets 26 Return on Equity 27 Return on Common Equity 28 29 Du Pont ROE 30 Market Value of Equity 31 Z-Score for Public Firms 20.00% 7.00% 5.00% 5.00% 8.00% 10.00% 1,200,000 2016 Sweet Candy Corp. Economic Profit Calculations 2017 36 Tax Rate 37 NOPAT 38 Total Operating Capital 39 After-tax Cost of Capital 40 Dollar Cost of Capital 41 Economic Profit 42 A V 2.5 Sweet Candy Corp. Industry 2017 2 Ratios 2017 2016 Liquidity Ratios Analysis Un Am 4 Current R-tio 5 Quick Ratio 2.50% 0.602 Efficiency Ratios 7 Inventory Turnover Ratu 8 Accounts Receivable Turnover Ratio 9 Average Collection Period 10 Fixed Asset Turnover 11 Total Asset Turnover 6.50% 8.00 40.00 days 2.00x 2.00% 12 Leverage Ratios 13 Total Debt Ratio 14 Long-Term Debt Ratio 15 LTD to Total Capitalization 16 Debt to Equity 17 Long-Term Debt to Equity 18 19 Times Interest Earned 20 Cash Coverage Ratio 50.00% 20.00% 30.00% 0.90x 40.00% Coverage Ratios 2.50x 3.50x 21 Profitability Ratios 22 Gross Profit Margin 23 Operating Proft Margin 20.00% 7.00 KIND OF Profitability Ratios 21 22 Gross Profit Margin 23 Operating Proft Margin 24 Net Proft Margin 25 Return on Total Assets 26 Return on Equity 27 Return on Common Equity 28 29 Du Pont ROE 30 Market Value of Equity 31 Z-Score for Public Firms 20.00% 7.00% 5.00% 5.00% 8.00% 10.00% 1,200,000 2016 Sweet Candy Corp. Economic Profit Calculations 2017 36 Tax Rate 37 NOPAT 38 Total Operating Capital 39 After-tax Cost of Capital 40 Dollar Cost of Capital 41 Economic Profit 42