TVM Basics Income Statement 1 Balance Sheet 2 3 1,500 1,040 Liabilities & Equity Current abilities: Assets Current assets: ols 60 SO Net Sales Operating costs except depreciation and amortization Depreciation and amortization Total Operating Costs Operating Income (or EBIT) Less: Interest 5 0 1,100 400 6 Cash Accounts receivable Inventories Total current assets $2,952 1,000 3,168 7,200 Accounts payable Accruals Notes payable Total current liabilities 7 5,400 5,400 52 B 9 348 139 6,600 Earnings before taxes (EBT) Less: Taxes (40%) Net Income Long-term bonds Total debt 10 209 11 Net fixed assets: 12,000 12 13 8,000 Common equity Net plant and equipment 14 15 Common stock Retained earnings Total common equity Total liabilities and equity 2,600 1,400 4,000 16 17 Total assets 16,000 16,000 Using the data you have and the formule you will be using in ratio analysis, solve for the ratios using Excel commands B Ratio Excel Solution 1 Formula 2 3 4 5 Current ratio Inventory turnover ratio Fixed assets turnover ratio Total assets turnover ratio Debt ratio Times interest ratio Current Assets / Current Liabilities Sales / Inventories Sales / Net Fixed Assets Sales/Total Assets Total Debt / Total Assets EBIT / Interest Expense 7 9