Page 8 8B11N021

Exhibit TN-5

SUGGESTED FINANCIAL RATIO FORMULAS

LIQUIDITY
CURRENT ASSETS
CURRENT RATIO 
CURRENT LIABILITIES

CURRENT ASSETS - INVENTORIES - PREPAID EXPENSES

QUICK RATIO 
CURRENT LIABILITIES

CASH  MARKETABLE SECURITIES

CASH RATIO 
CURRENT LIABILITIES

NWC  CURRENT ASSETS - CURRENT LIABILITIES

NWC
NWC TO TOTAL ASSETS 
TOTAL ASSETS

ASSET MANAGEMENT
NET CREDIT SALES
A/R TURNOVER 
AVERAGE ACCOUNTS RECEIVABLE

365
A/R TURNOVER IN DAYS 
A/R TURNOVER

COST OF GOODS SOLD

INVENTORY TURNOVER 
AVERAGE INVENTORIE S

365
INVENTORY TURNOVER IN DAYS 
INVENTORY TURNOVER

OPERATING CYCLE  INVENTORY TURNOVER IN DAYS  A/R TURNOVER IN DAYS

COST OF GOODS SOLD

A/P TURNOVER 
AVERAGE ACCOUNTS PAYABLE
365
A/P TURNOVER IN DAYS 
A/P TURNOVER

CASH CONVERSION CYCLE  INVENTORY TURNOVER IN DAYS - A/P TURNOVER IN DAYS  A/R TURNOVER IN DAYS

NET SALES
NWC TURNOVER 
AVERAGE NET WORKING CAPITAL
NET SALES
FIXED ASSETS TURNOVER 
AVERAGE CAPITAL ASSETS
NET SALES
TOTAL ASSETS TURNOVER 
AVERAGE TOTAL ASSETS
Page 9 8B11N021

Exhibit TN 5 (continued)

LONG-TERM DEBT PAYING ABILITY

Leverage Ratios

TOTAL LIABILITIES
DEBT RATIO 
TOTAL ASSETS
LT LIABILITIES
LT DEBT TO TOTAL CAPITALIZATION 
LT LIABILITIES  EQUITY
TOTAL LIABILITIES
DEBT/EQUITY RATIO
TOTAL EQUITY

Coverage Ratios
EBIT
TIMES INTEREST EARNED 
INTEREST EXPENSE
EBIT  LEASE EXPENSE  DEPRECIATI ON
CASH FLOW COVERAGE 
LEASE EXPENSE  INTEREST EXPENSE  PREFERRED DIVIDENDS/ (1 - t)  PRINCIPAL PAYMENTS/( 1 - t)

INTEREST EXPENSE
EFFECTIVE INTEREST RATE 
TOTAL INTEREST - BEARING DEBT

PROFITABILITY

In Relation to Sales
GROSS PROFIT
GROSS PROFIT MARGIN 
NET SALES
OPERATING INCOME
OPERATING PROFIT MARGIN 
NET SALES

NET INCOME
NET PROFIT MARGIN 
NET SALES

In Relation to Investment
EBIT
OPERATING INCOME RETURN ON INVESTMENT 
AVERAGE TOTAL ASSETS
NET INCOME  I (1 - t)
RETURN ON ASSETS 
AVERAGE TOTAL ASSETS
NET INCOME
RETURN ON EQUTY 
AVERAGE TOTALEQUITY
EBIT EBT NI SALES
x x x
RETURN ON EQUITY  SALES EBIT EBT AVERAGETOTAL ASSETS
AVERAGETOTAL DEBT
1-
AVERAGETOTAL ASSETS