With information from the Balance Sheet and the Income Statement of Gilliam Corp., compute:
a) profitability ratios
b) liquidity ratios
c) solvency analysis
d) What are your conclusions?
\begin{tabular}{|c|c|} \hline \multicolumn{2}{|l|}{ Balance Sheet, at december 2018} \\ \hline \multicolumn{2}{|l|}{ Assets } \\ \hline \multicolumn{2}{|l|}{ Current assets } \\ \hline Cash and cash equivalents & 70,000.00 \\ \hline Short-term investments & 40,000.00 \\ \hline Peceivables & 250,000.00 \\ \hline Inventory & 200,000.00 \\ \hline Total current assets & 560,000.00 \\ \hline Property, plant and equipment & 540,000.00 \\ \hline Total assets & 1,100,000.00 \\ \hline \multicolumn{2}{|l|}{ Qurrent liabilities } \\ \hline Accounts payable & 130,000.00 \\ \hline Oher acoounts payable & 120,000.00 \\ \hline Deferred taxes & 30,000.00 \\ \hline Total current liabilities & 280,000.00 \\ \hline Long term-debt & 200,000.00 \\ \hline Total liabilities & 480,000.00 \\ \hline \multicolumn{2}{|l|}{ Shareholder's equity } \\ \hline Peferred stocks, $100-par value & 150,000.00 \\ \hline Common stocks, $5 & 50,000.00 \\ \hline Capital in excess of par value & 200,000.00 \\ \hline Fetained earnings & 220,000.00 \\ \hline Total shareholder's equity & 620,000.00 \\ \hline Total liabilities and shareholder's equity & 1,100,000.00 \\ \hline \multicolumn{2}{|l|}{ Income Statement, at december 2018} \\ \hline Net sales & 2,400,000.00 \\ \hline Cost of sales & 1,600,000.00 \\ \hline Gross margin & 800,000.00 \\ \hline Selling, general and administrative expenses & 560,000.00 \\ \hline Earnings before interest and taxes & 240,000.00 \\ \hline Interest expenses & 30,000.00 \\ \hline Earnings before taxes & 210,000.00 \\ \hline Taxes & 75,000.00 \\ \hline Net earnings & 135,000.00 \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \multicolumn{2}{|l|}{ Balance Sheet, at december 2018} \\ \hline \multicolumn{2}{|l|}{ Assets } \\ \hline \multicolumn{2}{|l|}{ Current assets } \\ \hline Cash and cash equivalents & 70,000.00 \\ \hline Short-term investments & 40,000.00 \\ \hline Peceivables & 250,000.00 \\ \hline Inventory & 200,000.00 \\ \hline Total current assets & 560,000.00 \\ \hline Property, plant and equipment & 540,000.00 \\ \hline Total assets & 1,100,000.00 \\ \hline \multicolumn{2}{|l|}{ Qurrent liabilities } \\ \hline Accounts payable & 130,000.00 \\ \hline Oher acoounts payable & 120,000.00 \\ \hline Deferred taxes & 30,000.00 \\ \hline Total current liabilities & 280,000.00 \\ \hline Long term-debt & 200,000.00 \\ \hline Total liabilities & 480,000.00 \\ \hline \multicolumn{2}{|l|}{ Shareholder's equity } \\ \hline Peferred stocks, $100-par value & 150,000.00 \\ \hline Common stocks, $5 & 50,000.00 \\ \hline Capital in excess of par value & 200,000.00 \\ \hline Fetained earnings & 220,000.00 \\ \hline Total shareholder's equity & 620,000.00 \\ \hline Total liabilities and shareholder's equity & 1,100,000.00 \\ \hline \multicolumn{2}{|l|}{ Income Statement, at december 2018} \\ \hline Net sales & 2,400,000.00 \\ \hline Cost of sales & 1,600,000.00 \\ \hline Gross margin & 800,000.00 \\ \hline Selling, general and administrative expenses & 560,000.00 \\ \hline Earnings before interest and taxes & 240,000.00 \\ \hline Interest expenses & 30,000.00 \\ \hline Earnings before taxes & 210,000.00 \\ \hline Taxes & 75,000.00 \\ \hline Net earnings & 135,000.00 \\ \hline \end{tabular}
