web case 14-northern lights communication phone problems

need answer for follow up questions

1. Calculate liquidity ratios, return on investment, return on equity, asset turnover ratio, inventory turnover ratio, working capital. 2. Then, if you understand what these ratios mean, use them to evaluate performance and answer Q1. 3. Review the class notes on finance. 4. For Q2, the above ratio analysis will indicate what changed between 2010 and 2011. See if ratios increased or decreased and figure out why.

Case C 1 of 4 Lights Communications roblems The following financial statements are for the Northern Lights Corporation. The company provides pay phone service at many of the small convenience stores in Ontario and Manitoba. The business was "meeting plan" until 2011 when a problem developed. Balance Sheet ASSETS 2010 2011 $ 668,778 4,453,192 137,036 411,990 $ 592,491 3,888,621 112,699 407.274 $ 5,670,996 $5,001,085 Current Assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses and other current assets Total current assets: Fixed assets: Property, plant, and equipment (net) Site licenses Investments in affiliates Total fixed assets Other assets TOTAL ASSETS $12,935,453 $16,466,001 1,941,467 164,549 $15,041,469 3,771,571 251,672 $20,489,244 681.754 $21,394,219 455.488 $25,945,817 DEBT (LIABILITIES) AND EQUITY Current Liabilities Notes payable $ 659,604 Case C- Northern Lights Communications 2 1,491,767 $3,320,197 1,094,381 668,826 310,358 2,971,935 835,384 3,036,633 256,140 Current portion of other notes payable Current portion of capital lease obligations Accounts payable Accrued telecommunications and other expenses Income taxes payable Total current liabilities Long-term liabilities: Notes payable, less current portion Capital lease obligations Deferred income tax liability Total long-term liabilities Preferred stock Common stockholders' equity: 475.945 $ 8,336,985 $ 6,784,185 $ 6,605,835 $10,030,963 780,593 342.359 56,219 306.021 $10,393,203 $ 2,400,000 $ 7,728,787 $ 2,400,000