Tax rate	21%
	Sales	$ 231,900,000
	COGS	170,157,000
	Other expenses	27,711,200
	Depreciation	7,566,900
	EBIT	$ 26,464,900
	Interest	4,170,100
	Taxable income	$ 22,294,800
	Taxes (21%)	4,681,908
	Net income	$ 17,612,892
	Dividends	$ 7,925,000
	Add to RE	$ 9,687,892
	Assets			Liabilities & Equity
	Current Assets			Current liabilities
	Cash	$ 3,614,200		Accounts payable	$ 6,977,700
	Accounts rec.	6,501,900		Notes payable	15,776,900
	Inventory	7,290,100		Total CL	$ 22,754,600
	Total CA	$ 17,406,200
				Long-term debt	$ 40,100,000
	Fixed assets
	Net P&E	$ 111,629,300		Shareholder equity
				Common stock	$ 6,140,000
				Retained earnings	60,040,900
				Total equity	$ 66,180,900
	Total assets	$ 129,035,500		Total L&E	$ 129,035,500
	Yacht Industry Ratios
		Lower Quartile	Median	Upper Quartile
	Current ratio	0.50	1.43	1.89
	Quick ratio	0.21	0.38	0.62
	Total asset turnover	0.68	0.85	1.38
	Inventory turnover	6.85	9.15	16.13
	Receivables turnover	6.27	11.81	21.45
	Debt ratio	0.44	0.52	0.61
	Debt-equity ratio	0.79	1.08	1.56
	Equity multiplier	1.79	2.08	2.56
	Interest coverage	5.18	8.06	9.83
	Profit margin	4.05%	6.98%	9.87%
	Return on assets	6.05%	10.53%	15.83%
	Return on equity	9.93%	16.54%	28.14%
	Output area:
1)	Calculate all of the ratios listed in the industry table for East Coast Yachts.
	Current ratio
	Quick ratio
	Total asset turnover
	Inventory turnover
	Receivables turnover
	Debt ratio
	Debt-equity ratio
	Equity multiplier
	Interest coverage
	Profit margin
	Return on assets
	Return on equity
2)	Compare the performance of East Coast Yachts to the industry as a whole. For each ratio, comment on why it might be viewed as positive or negative relative to the industry. Suppose you create an inventory ratio calculated as inventory divided by current liabilities. How do you interpret this ratio? How does East Coast Yachts compare to the industry average?
	Ratio	Positive		Negative
	Current ratio
	Quick ratio
	Total asset turnover
	Inventory turnover
	Receivables turnover
	Debt ratio
	Debt-equity ratio
	Equity multiplier
	Interest coverage
	Profit margin
	Return on assets
	Return on equity
	Written response