Use the attached sheet to go over the problem and calculate Ratio Analysis on the sheet provided and answers for the below:

Raminder Luther has recently been approached by her old grad school colleague, Kyle Thibadeaux, with a

proposal to buy a 15 percent interest in CajunMade Sportswear. The firm manufactures golf, tennis, and

other sportswear including swimwear and is located in Lake Charles, Louisiana.

Kyle points out that the firm has had a strong increase in sales over the past few years (see income statements).

The annual growht rate is 25%. In addition to the Income Statements, Kyle has provided Balance Sheets

and select industry ratios for the past 3 years. The industry growht rate in sales is 10 - 12% per year and

the real growth in GDP was 3 - 4% during this time period.

The stock in CajunMade has become available because one of the founding family members is in poor health

and needs the cash.

Your job is to assist Raminder in evaluating the overall condition of the company. The company does not pay

dividends nor is expected to in the near future. Therefore any returns to an investor must come through

share price appreciation.

After conducting a thorough analysis of CajunMade what comments and recommendations do you have for

Ms. Luther?