Ratio Analysis – LIQUIDITY

a. Current Ratio Current Assets $2,000,000.00/1,200,000.00

Current Liabilities = 1.67

b. Acid Test Cash + Marketable $200,000.00+50,000.00+800,000

(Quick) Ratio Securities + Accounts / 1,200,000.00
Receivable + Short-term = 0.88
Notes Receivable
Current Liabilities

Ratio Analysis – ACTIVITY

a. Accounts Sales on Account $ 10,000,000.00
Receivable Average Accounts / (800,000 + ) / 2
Turnover Receivable Balance

Average 365 days 365 days / _________

Collection Period Accounts Receivable
Turnover
b. Inventory Cost of Goods Sold $ 7,500,000.00 / __________
Turnover Average Inventory Balance
Average Sale 365 days 365 days / ________
Period Inventory Turnover
c. Total Assets Sales $ 10,000,000.00 / ________
Turnover Average Total Assets
Ratio Analysis – DEBT
a. Times Interest Earnings before interest $1,300,000.00 / 200, 000.00
Earned Ratio expense and income taxes =6.50
Interest expense
b. Debt-to Equity Total Liabilities $4,200.000.00 / 7,800,000.00
Ratio Shareholder’s Equity =0.54
c. Equity Average Total Assets
Multiplier Average Shareholder’s
Equity
Ratio Analysis – PROFITABILITY
a. Gross Margin Gross Margin $2,500,000.00 / 10,000,000.00
Percentage Sales =0.25
b. Net Profit Net Income $ 660,000.00 / 10,000,000.00
Margin Sales =0.07
Percentage
c. Return on Total Net Income + [Interest $ 660,000.00+[200,000x (1-40%)
Assets Expense x (1-Tax Rate) / ______
Average Total Assets
D. Return on Net Income $ 660,000.00 / ________
Equity Average Shareholder’s
Equity
Ratio Analysis – MARKET VALUE
a. Earnings per Net Income $ 660,000.00
Share Average # of common (______ + 200,000) / 2
 shares outstanding
b. Price Earnings Market Price per Share $ 27.50 / ________
Ratio Earnings per Share
c. Dividend Dividends per Share
Payout Ratio Earnings per Share
d. Dividend Yield Dividends per Share
Ratio Market Price per Share
e. Book Value per Total Shareholder’s Equity $ 7,800,000.00 / 200,000.00
Share # of common shares = 39.00
outstanding