1. The financial statements of Flathead Lake Manufacturing Company are shown below (next page). Refer to the financial statements of Flathead Lake Manufacturing Company:
2. What is the firm's current ratio for 2012 comparing to that of 2011?
3. What is the firm's inventory turnover ratio? (Please keep in mind that when a
4. ratio involves both income statement and balance sheet numbers, the balance
5. sheet numbers for the beginning and end of the year must be averaged.)
6. What is the firm's debt-to-equity ratio for 2012?
7. What is the firm's cash flow from operating activities for 2012?
8. The industry average ACP is 32 days. How is Flathead doing in its collections
9. relative to the industry? (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.)
10. What is the firm's total asset turnover for 2012?
11. What is the firm's EBIT for every dollar of sales in 2012?
12. What is the firm's return on equity for 2012?
13. What is the firm's P/E ratio for 2012?
14. What is the firm's compound leverage ratio? (Please keep in mind that when a
15. ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.)

Note: The common shares are trading in the stock market for $15 per share

Flathead lake Manufacturing Income Statement 2012 Sales 59.300900 Cost of Goods Sold 5,750,000 Depreciation Emense 550,000 Gross Profit $ 3mm Selling and Administrative Experts: 2,200,000 EBll' $ 800,000 Interest Expense 200,000 Income before Tax 5 500,000 Taxes 375,000 Net Income 225 Flathead lake Manufacturing Comparative Balance sheets 2012 2011 Cash 5 50.000 5 40.000 Accounts Receivable 570,000 600,000 Inventory 530,000 460,000 Total Current Assets 5 1,150,\" $ 1,100,\" Fixed Assets 2,050,000 1,400,000 Toni Assets i saw i 2'500I000 Accounts Payable $ 320,000 3 500,000 Bank Loans 480,!!!) 400,000 Toni Current Liablllties $ 000,000 $ 700,000 Long-term Bonds 1,500,000 1,000,000 Total liabilities 5 2,300,000 $ 1,700,000 Common Stock (200,!!!) shares) 200,000 200,000 Retained Earnings 700,000 600,000 Tatal Equity 5 900.000 5 800.000 w Ham-and mm M