The account receivable turnover ratio in year 1 and year 2. (If Credit sale is 10% of the total sales) The account payable turnover ratio in year 1 and year 2. (If Credit sale is 25% of the goods purchased)

Return on invested capital ratio in year 1= Return on invested capital ratio in year 2= Return on owner's equity ratio in year 1= Return on owner's equity ratio in year 2= Profit as a percentage of sales ratio in year 1= Profit as a percentage of sales ratio in year 2= (Please see the balance sheet and P&L statement on the next page!)

Percent Account Year! Year 2 Difference Difference Assets Current assets: Cash $ 49,000 $ 17.000 $ -32.000 -65.3 Accounts receivable 5.000 30,000 +25,000 +500.0 Inventories 151.000 127.000 -24,000 -15.9 Total current assets $205,000 $ 174,000 $ -31,000 -15.1 Fixed assets: Land 250,000 250.000 0 Buildings and equipment 500,000 660.000 +160,000 +32.0 Less: Depreciation - 150,000 -170,000 -20,000 - 13 Total fixed assets 600,000 740,000 $ 140,000 Other investments: Cash value of life insurance 6,400 6,600 +200 +3.1 Investment in other firms 24.400 24.400 0 0.0 Investment in subsidiary 75,000 75.000 0 0.0 Total other 105,800 106,000 +200 +0.2 Total assets $910.800 $1.020,000 $+109,200 +120 Liabilities and Owners' Equity Current liabilities: Accounts payable $ 20,000 $ 53,000 $ +33,000 +165.0 Taxes payable 1,500 1.750 +250 +16.7 Installment on long-term debe due this year 20,000 35.200 +15,200 +760 Total current liabilities 41,500 89.950 +48,450 +1167 Long-term liabilities: Long-term notes payable 301,600 320,050 +18,450 +6.1 Total liabilities $343,100 $ 410,000 $ 66,900 +19.3 Owners' equity Capital stock 390,500 390,500 0 0.0 Retained earnings, January 147,200 177,200 +30,000 -20.4 Net Income for year 30.000 42,300 +12.300 +41.0 Retained earnings, December 31 $567.700 $ 610.000 $ 42.300 Total liabilities and owners' equity $910,800 $1,020,000 $+109.200 +120 Figure 14-2 Comparative Profit-and-Loss Statement Comparative Profit-and-Loss Statement AgBiz Corporation Year 1 $1.250.000 Percent of Sales 100.0 Year 2 $1.465,000 Percent of Sales 100.0 Difference $+215.000 Percent Difference +17.2 +51.0 +2.6 100.000 +1,077.000 1.177.000 - 151.000 1.026,000 224.000 151.000 +1,105.000 1.256,000 - 127,000 1.129,000 336,000 +51.000 +28,000 +79.000 -24.000 +103.000 +112.000 82.1 17.9 77.1 22.9 - 15.9 +10.0 +50.0 Revenue from sales Less: Cost of goods sold Inventory --Jan. 1 + Goods purchased Goods available for sale - Inventory-Dec. 31 Cost of goods sold Gross margin Less: Operating expenses Salaries and wages Office expenses Selling and promotion Utilities and fuel Interest expenses Depreciation Total operating expenses Income before taxes Less: Allowance for income taxes 100.000 1.000 38,000 30.000 4.000 8.0 0.1 3.0 24 03 1.2 15.0 2.9 0.5 2.4 140,000 3.400 72,000 44,600 5,000 20.000 $ 285.000 51,000 9.6 0.2 4.9 3.0 0.3 15,000 $ 188,000 36,000 6,000 10.000 -40,000 +2.400 +34.000 +14,600 +1,000 +5.000 $ +97000 +15,000 +2.700 $ 12.300 -40.0 *240.0 +89.5 +48.7 +25.0 +33) +51.6 +41.7 -450 +41.0 8.700 19.5 3.5 0.6 2.9 $ 42.300