Use the financial statements below to calculate each of the following ratios and briefly describe what the results of each indicate.

Financial Perspective:

• Current Ratio
• Return on Sales
• Debt to Equity Ratio
• Return on Investment
• Quick Ratio
• Return on Owners' Equity
• Gross Margin

Internal Perspective:

• Accounts Receivable Turnover
• Days in Collection
• Inventory Turnover
• Days in the Selling Cycle
• Accounts Payable Turnover
• Days in the Pay Cycle

Banner Corporation Balance Sheet December 31, 2008
Current Assets		Current Liabilities
Cash	$ 30,000	Accounts Payable	$ 130,000
Accounts Receivable	95,000	Wages Payable	225,000
Inventory	250,000	Total Current Liabilities	$ 355,000
Total Current Assets	$375,000
		Long-Term Liabilities
Property, Plant & Equipment		Long Term Notes Payable	$900,000
Land	$250,000	Total Liabilities	$1,255,000
Buildings	795,000
Equipment	85,000
Total Property Plant &		Owners Equity	$ 250,000
Equipment	$1,130,000	Total Liabilities and
Total Assets	$1,505,000	Owners Equity	$1,505,000
Total Assets 12/31/07	1,200,000	Accts Rec 12/31/07	$80,000
Total Owners Equity 12/31/07	$300,000	Accts Pay 12/31/07	$85,000

Banner Corporation Income Statement For the year ended Dec 31, 2008
Sales	$5,300,000
Cost of Goods Sold	1,750,000
Gross Margin	$3,550,000
Operating Expenses	2,100,000
Operating Income	$ 1,450,000
Tax Expense	190,000
Net Income	$ 1,260,000