Table 3.1 in Chapter 3 presents financial statements over the period 2011 through 2014 for R&E Supplies, Inc.
a. Use these statements to calculate as many of the ratios in Table 2.2as you can.
b. What insights do these ratios provide about R&€™s financial performance? What problems, if any, does the company appear to have?

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Income Statements 2011 2012 $13,764 11,699 2,065 2013 $16,104 13,688 2,416 2014 $20,613 Net sales Cost of goods sold Gross profit Expenses 9,400 17,727 2,806 1,790 1,019 671 General, selling, and administrative expenses 1,239 Net interest expense Earnings before tax Tax Earnings after tax 723 325 $ 398 1,610 110 696 313 $ 383 90 529 238 302 Balance Sheets Assets Current assets: Cash and securities Accounts receivable Inventories Prepaid expenses $ 671 1,343 1,119 14 $ 551 1,799 1,376 12 3,728 124 $ 3,852 $ 644 2,094 1,932 2,267 4,685 295 4,980 5,583 297 $5,870 Total current assets Net fixed assets $3,275 Total assets Liabilities and Owners' Equity Currentliabilities: Bank loan Accounts payable Current portion long-term debt Accrued wages 1,007 60 1,443 50 2,426 50 3,212 100 1,122 960 150 1,043 3,275 3,380 760 150 1,580 5,870 Total current liabilities 1,550 910 150 1,242 $3,852 2,536 860 150 1,434 $ 4,980 Long-term debt Common stock Retained earnings Total liabilities and owners' equity