Use the following balance sheet form to enter amounts you identify from the computations on the Liquidity and Solvency Measures panel. You will identify other amounts for the balance sheet on the Profitability Measures panel. If you have a choice of two amounts, assume the first amount in the ratio is for the end of the year. Compute any missing amounts.

Balance Sheet

December 31, 20Y6

1	Assets
2	Current assets:
3	Cash	$823,000.00
4	Marketable securities
5	Accounts receivable (net)
6	Inventory
7	Prepaid expenses
8	Total current assets
9	Long-term investments
10	Property, plant, and equipment (net)
11	Total assets
12	Liabilities
13	Current liabilities
14	Long-term liabilities
15	Total liabilities
16	Stockholders Equity
17	Preferred stock, $10 par
18	Common stock, $5 par
19	Retained earnings
20	Total stockholders equity
21	Total liabilities and stockholders equity

Use the following comparative income statement form to enter amounts you identify from the computations on the Liquidity and Solvency Measures panel and on the Profitability Measures panel. Compute any missing amounts and complete the horizontal analysis columns. Enter percentages as decimal amounts, rounded to one decimal place. When rounding, look only at the figure to the right of one decimal place. If < 5, round down and if ? 5, round up. For example, for 32.048% enter 32.0%. For 32.058% enter 32.1%.

Comparative Income Statement

For the Years Ended December 31, 20Y6 and 20Y5

1		20Y6	20Y5	Amount Increase (Decrease)	Percentage Increase (Decrease)
2	Sales		$7,267,000.00
3	Cost of goods sold		3,444,000.00
4	Gross profit		$3,823,000.00
5	Selling expenses		$1,453,200.00
6	Administrative expenses	1,239,000.00	1,103,000.00
7	Total operating expenses		$2,556,200.00
8	Income from operations		$1,266,800.00
9	Interest expense		120,600.00
10	Income before income tax		$1,146,200.00
11	Income tax expense		179,460.00
12	Net income		$966,740.00