write a report comparing the ratios from exhibit 4 with the company.

please provide formula for the ratios

Exhibit 1 INCOME STATEMENT 2005 2006 2007 2008 2009 2,142,659,000 1,323,957,000 818,702,000 5,413,625,000 3,120,000,500 2,293,624,500 8,671,715,000 5,032,513,200 3,639,201,800 12,175,476,500 7,886,796,000 4,288,680,500 13,664,714,160 8,974,149,576 4,690,564,584 Sales Cost of Goods Sold Gross Profit Operating Costs Selling and Distribution R&D Administration Amortization Operating Profit Interest Earnings Before Taxes Taxes Net Income 212,340,640 93.640,450 95,003,300 81,414,429 336,303,182 53,251,456 283,051,726 99,068,104 183,983,622 545,980,400 220,340,340 405,340,300 122,465,588 999,497,873 145,434,234 854,063,638 298.922,273 555,141,365 854,300,000 365,660,340 832,740,300 187,929,165 1,398,571,995 288,898,584 1,109,673,411 388,385,694 721,287,717 934,532,230 476,350,230 999,453,230 288,216.088 1,590,128,722 277,686,944 1,312,441,778 459,354,622 853,087,156 1,001,234,530 785,774,340 980,340,500 394,440,051 1,528,775,163 329,923,700 1,198,851,462 419,598,012 779,253,450 Exhibit 2 BALANCE SHEETS 2006 2007 Cash A/R Parts Inventory WIP Inventory Finished Goods Inventory Total Current Assets LP,&E, Net Intangibles Total Assets 2005 310,630,300 316,972,950 253,578,360 26,789,180 359,340,630 1,267,311,420 710,727,625 103,416,660 2,081,455,705 790,419.373 758,988,750 607,191,000 45,354,460 960,187,250 3,162,140,833 812,956,891 411,698,984 4,386,796,708 1,437,227,573 1,201,094,250 960,875,400 66,650.675 1,451,230,215 5,117,078,113 1,317,388,220 561,903,428 6,996,369,761 2008 1,366,526,361 1,328,523,975 1,062,819,180 75,640,210 1,605,660,505 5,439,170,231 2,281,077,095 601,083,781 8,321,331,107 2009 1,413,474,400 1,503,560,340 1,201,345,530 89,575,400 1,805,340,520 6,013,296,190 3,363,891.508 580,509,006 9,957,696,704 A/P Current Portion of LT Debt Total Current Liabilities Long-term Debt Shareholders' Equity Total Liabilities and Equities 422,630.600 147,920.710 570,551,310 739,603,550 771,300,845 2,081,455,705 1,011,985,000 341,394,916 1,353,379,916 1,706,974,582 1,326,442,210 4,386,796,708 1,305,530,320 607,184,919 1.912,715,239 3,035,924,595 2,047,729,927 6.996,369,761 1,509,430,300 651,847,287 2,161,277,587 3,259,236,437 2,900.817,082 8,321,331,107 1,564,430,450 785,532,620 2,349,963,070 3.927,663,101 3,680,070,533 9,957,696,704 Exhibit 4 INDUSTRY AVERAGES Vertical Analysis (%) Balance Sheet 2009 Cash Accounts Receivable 4.54 8.34 Key Financial Ratios Industry Averages Vertical Analysis (%) 2009 Income Statement 2009 Current Ratio 2.84X Sales 100.00 Cash Ratio 0.05% Cost of Goods Sold 62.00 Parts Inv Turnover in Days 32.26 days Gross Profit 38.00 WP Inv Turnover in Days 7.89 days Operating Costs FG Inv Turnover in Days 188.33 days Selling and Distribution 10.89 A/R Turnover in Days 30.44 days R&D 7.01 A/P Turnover in Days 11.11 days Administration 8.34 Cash Conversion Cycle 192.81 days Depreciation 4.35 Fixed Assets Turnover 2.42X Operating Profit 7.41 Total Assets Turnover 1.00X Interest 2.31 Debt Ratio 0.50X Earnings Before Taxes 5.10 Times Interest Earned 3.21% Taxes 1.79 Gross Profit Margin 38.00% Net Income 3.32 Operating Profit Margin 7.41% Net Profit Margin 3.32% Return on Assets 3.32% Return on Equity 6.60% Source: Industry average information from a reliable third party source. Parts Inventory WIP Inventory Finished Goods Inventory Total Current Assets Land, Plant & Equipment, Net Other Assets Total Assets 5.48 1.34 31.99 51.69 41.34 6.97 100.00 Accounts Payable Current Portion of LT Debt Total Current Liabilities Long-term Debt Shareholders' Equity Total Liabilities and Equities 11.23 7.00 18.23 31.50 50.27 100.00