The following calculations are the current measures of financial performance for our company.

a. Operating Profit Margin.

462,443 / 72,837=15.8%

Gross Profit Margin

(237,613 - 462,443)/ 462,443 = 48.6%

b. Current Ratio.

128,335 / 57,648 = 2.23

c. Working Capital

378,389 - 123,048 = 255,341

d. Long-term to debt-to-capital ratio.

65,400 / (65,400 + 255,341) = 0.2

Our present

debt-to-equity ratio

123,048 / 255,341 =

0.5

e. Price Earnings Ratio.

9.9

(Way below 20, which is indicative that our earnings growth is at risk, or that it will grow slowly, pushing us further down the line) We can discuss how to address this tonight before 8pm.

f. Return on Total Assets. (ROA)

48,853 /255,341 (Profits after taxes + Interest)/Total assets

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The following pics are our current Balance & Cash Flow, and Income statement.

Would it not make more sense to maybe sell some of our equipment, since we can use those funds in the same year to help pay off dept, or maybe strategize into other segments. Our strategy is the Click & Brick as our business model.

1.How would you measure and assess effectiveness of a production capability?

2.Do you think that errors in production and costs of labor also play heavily into the production

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