The Retail Group, Inc.

Statement of Financial Position

December 31, 20X9

(all amounts in millions)

Assets Liabilities and Stockholders Equity .

Current assets: Current liabilities:

Cash... $12.0 Accounts payable $9.0

Accounts receivable (net). 9.0 Salaries payable.. .8

Marketable securities........... 5.5 Dividends payable.. .6

Prepaid insurance................ .5 Interest payable. .5

Inventory.......................... 7.2 Total current liabilities. 10.9

Total current assets.............. 34.2

Assets Liabilities and Stockholders Equity .

Property, plant, & equipment: Long-term liabilities:

Equipment (net).................. 5.0 Notes payable... 12.0

Buildings (net).... 11.0 Bonds payable... 14.0

Land................. 4.0 Total long-term liabilities 26.0

Total property, plant, & equipment 20.0 Total liabilities. $36.9

Other assets: Stockholders equity:

Investments... 8.0 Common stock... 15.0

Patents... .5 Retained earnings. 10.8

Total other assets.. 8.5 Total stockholders equity.. 25.8

Total liabilities and

Total assets............... $62.7 stockholders equity... $62.7

The Retail Group, Inc.

Income Statement

For the Year Ended December 31, 20X9 (all amounts in millions)

Sales.$85.0

Cost of goods sold. 51.0

Gross profit... 34.0

Selling expenses:

Sales salaries and commissions $8.2

Insurance expense... 1.5

Advertising expense.. 2.5

Utilities expense. 2.4

Depreciation expense: equipment. 1.0

Delivery expense. .2

Total selling expenses.. $15.8

General and administrative expenses:

Executive and administrative salaries.. $7.9

Utilities expense... 2.5

Rental expense. .7

Depreciation expense: building.... .6

Patent amortization expense. .6

Total general and administrative expenses 12.3

Total operating expenses. 28.1

Operating income.. 5.9

Nonoperating items:

Interest revenue ($.2)

Interest expense. 1.4

Nonoperating expense (net) 1.2

Income before income taxes.. 4.7

Income tax expense.. 1.9

Net income.. $2.8

Additional Financial Statement Information for The Retail, Group Inc.

800,000 weighted average shares of common stock were issued and outstanding throughout 20X9.

The accounts receivable balance (net of uncollectible accounts) on December 31, 20X8 was $8,400,000. All sales are credit sales.

The inventory balance on December 31, 20X8 was $6,600,000.

$2,000,000 in total dividends were declared during 20X9.

Total stockholders equity on December 31, 20X8 was $25,000,000.

Total assets on December 31, 20X8 were $58,600,000.

The market price per share of common stock on December 31, 20X9 was $49.

There was no preferred stock.

Based on the Statement of Financial Position as of December 31, 20X9, the Income Statement for the year-ended December 31, 20X9, and the additional financial information provided for The Retail Group, Inc, calculate the the following ratios:

3. 20X9 Average Collection Period?, 20X9 Operating Cycle,? 20X9 Debt Ratio,? 20X9 Debt to Equity Ratio,?