Table I

Signal Cable
INCOME STATEMENT
2014% 2014 2013% 2013
Net Sales 100.0% 2,050,000 100.0% 1,678,894
Cost of Goods sold 75.0% 1,537,500 80.0% 1,343,115
Depreciation 3.9% 79,000 3.0% 51,000
Selling & Administrative Expenses 2.0% 40,000 2.0% 32,945
Earnings Before Interest and Taxes 19.2% 393,500 15.0% 251,834

Interest Paid 7.6% 155,000 2.6% 44,000

Taxable Income 11.6% 238,500 12.4% 207,834
Taxes (40%) 4.7% 95,400 5.0% 83,134
Net Income 6.98% 143,100 7.43% 124,700
Dividends 30.0% 42,930 30.0% 37,410
Addition to Retained Earnings 70.0% 100,170 70.0% 87,290

Table II
BALANCE SHEET 2014 2013

ASSETS
Cash 5,000 40,000
Accounts Receivable 540,000 200,000
Inventories 1,300,450 650,000
Total Current Assets 1,845,450 890,000
NWC 950,450 535,000
Gross Fixed Assets 1,300,000 510,000
Accumulated Depreciation 232,000 153,000
Net Fixed Assets 1,068,000 357,000

Total Assets 2,913,450 1,247,000

LIABILITIES & EQUITY

Accounts Payable 145,000 55,000
Notes Payable 750,000 300,000
Total Current Liabilities 895,000 355,000

Long-term Debt 1,226,280 200,000

Common-stock and Paid in Surplus
(200,000 shares outstanding) 600,000 600,000
Retained Earnings 192,170 92,000
Total 2,913,450 1,247,000

Interest Coverage Ratio 2.538709677 5.723495455

Net Profit Margin 6.98% 7.43%
Cash Ratio 0.0056 0.113
Current Ratio 1.01 1.50
Quick Ratio 0.61 0.68
NWC to TA 0.33 0.43
Interval Ratio 426.99793978 236.07255498
Absolute Liquidity = NWC 950,450 535,000
Book Value per share 3.96085 3.46
 Change
371,106
194,385
28,000
7,055
141,666

111,000
30,666
12,266
18,400
5,520
12,880

Change

35,000
(340,000)
(650,450)
(955,450)
(415,450)
(790,000)
(79,000)
(711,000)

(1,666,450)

90,000
450,000
540,000
-
1,026,280

-
100,170
1,666,450
 Signal Cable Company
2014 Statement of Cash Flows

Cash at beginning of year 2014 $ 40,000

Operating activity
Net income 143,100
Plus:
Depreciation 79,000
Increase in accounts payable 90,000

Less:
Increase in accounts receivable (340,000)
Increase in inventory (650,450)
Net cash from operating activity (678,350)

Investment activity
Fixed asset acquisitions (790,000)
Net cash from investment activity (790,000)

Financing activity
Increase in notes payable 450,000
Increase in long-term debt 1,026,280
Dividends paid (42,930)
Increase in common stock -
Net cash from financing activity 1,433,350

Net decrease in Cash (35,000)

Cash, end of year 2014 $ 5,000