VARY IMPORTANT: please answer with less than 30 minutes and not more than that and must be typed on computer do not write it on paper .

. Essay Questions .

A. Use the following information for questions

Cash $ 90,000

Sales (all on credit) $ 12,000,000

Marketable securities 150,000

Interest expense 150,000

Accounts payable $ 150,000

Retained earnings 1800,000

Accounts receivable 1050,000

Taxes 300,000

Inventory 1110,000

Net plant and equipment 2400,000

Selling and administrative expense* 1350,000

Liabilities and Stockholders Equity

Notes payable 750,000

Cost of goods sold 9,000,000

Long-term liabilities 900,000

Extraordinary loss 600,000

Common stock 1200,000

From the information above please:

1- Prepare the Balance sheet.

2- Prepare the Income statement)

3-Calculate the following ratios and what these ratios masseurs?

Selling and administrative expense*Includes $150,000 in lease payments

A, Profitability ratios

1. Profit margin:

2. Return on assets (investment): .

3. Return on equity: