Use the following financial sheets and information for all questions.

The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.

Tax rate 40% Stock price $17.00 Shares outstanding 3,800,000 Dividends are 50% of net income

Income Statement Period Ending 31-Dec-13 Total Revenue 148,239,000 COGS 118,094,000 Selling General and Administrative 13,384,000 Depreciation 72,000 Earnings Before Interest And Taxes 16,689,000 Interest Expense 829,000 Income Before Tax 15,860,000 Income Tax Expense (40%) 6,344,000 Net Income 9,516,000 Balance Sheet Date 31-Dec-13 Assets Current Assets Cash 14,468,000 Net Receivables 98,359,000 Inventory 18,758,000 Total Current Assets 131,585,000 Property Plant and Equipment 70,441,000

Total Assets 202,026,000

Liabilities Current Liabilities Accounts Payable 22,446,500 Accruals 14,315,500 Notes Payable 3,631,000 Total Current Liabilities 40,393,000 Long Term Debt 134,919,000 Total Liabilities 175,312,000

Stockholders' Equity Common Stock 40,000 Retained Earnings 26,674,000 Total Stockholder Equity 26,714,000 Total Assets 202,026,000

Question/Problem 1) (Worth 30 points) 1. What is the firm's current ratio? 2. What is the firm's days-sales-outstanding (DSO)? Assume a 360-day year for this calculation. 3. What is the firm's total assets turnover? 4. What is the firm's inventory turnover ratio? 5. What is the firm's TIE? 6. What is the firm's ROA? 7. What is the firm's basic earning power? 8. What is the firm's ROE? 9. What is the firm's P/E ratio? 10. What is the firm's market-to-book ratio?

Question/Problem 2) (Worth 50 points) Calculate the additional or external funds needed if the firm is expecting a growth rate of 10% next year. The firm is currently operating at 95% of capacity and the fixed assets can only by $10,000,000 increments.

Question/Problem 3) (Worth 20 points) Calculate the common size balance sheet and the common size income statement for the company.