Balance sheet 2020 2019 Cash 25,000.00 24,100.00 Accounts Receivable 763,900.00 Inventories 763,445.00 Total current assets 1,551,445.00 Net fixed assets 1,593,819.00 1,343,707.00 Total assets _________________ 2,895,152.00 Accounts payable 400,500.00 Notes payable 311,000.00 370,000.00 Accruals 75,000.00 100,902.00 Total current liabilities 871,402.00 Long term debt 1,165,250.00 700,000.00 Shareholder’s equity 1,043,750.00 Retained earnings 280,000.00 Total liabilities and shareholder’s equity _________________ 2,895,152.00 Income statement 2020 Sales revenue 5,075,000.00 Cost of goods sold Gross profit Operating expenses EBIT Interest 93,000.00 EBT Tax 24,000.00 Earnings available for preferred stocks Preferred dividends 3,000.00 Earnings available for common stocks __________________ Common stock dividends 13,000.00 Inventory turnover 5.3 Average collection period 57 Asset turnover 1.6 Debt ratio 0.57 Gross profit margin 0.27 Net profit margin 0.0071 ROA 1.2 ROE 2.7 Current ratio 2.49 Inventory turnover=cost of goods sold/Inventory Average collection period=accounts receivable/average sales per day=accounts receivable/(annual sales/365) Asset turnover=sales/total assets Debt ratio=total liabilities/total assets Gross profit margin=(sales-cost of goods sold)/sales=Gross profit/sales Net profit margin=net income or earnings available for common stockholders/sales ROA=net income or earnings available for common stockholders/total assets ROE=net income or earnings available for common stockholders/common stock equity Current ratio=current assets/current liability

Balance sheet 2020 2019

Cash 25,000.00 24,100.00

Accounts Receivable 763,900.00

Inventories 763,445.00

Total current assets 1,551,445.00

Net fixed assets 1,593,819.00 1,343,707.00

Total assets _________________ 2,895,152.00

Accounts payable 400,500.00

Notes payable 311,000.00 370,000.00

Accruals 75,000.00 100,902.00

Total current liabilities 871,402.00

Long term debt 1,165,250.00 700,000.00

Shareholder’s equity 1,043,750.00

Retained earnings 280,000.00

Total liabilities and shareholder’s equity _________________ 2,895,152.00

Income statement 2020

Sales revenue 5,075,000.00

Cost of goods sold

Gross profit

Operating expenses

EBIT

Interest 93,000.00

EBT

Tax 24,000.00

Earnings available for preferred stocks

Preferred dividends 3,000.00

Earnings available for common stocks __________________

Common stock dividends 13,000.00

Inventory turnover 5.3

Average collection period 57

Asset turnover 1.6

Debt ratio 0.57

Gross profit margin 0.27

Net profit margin 0.0071

ROA 1.2

ROE 2.7

Current ratio 2.49

Inventory turnover=cost of goods sold/Inventory

Average collection period=accounts receivable/average sales per day=accounts receivable/(annual sales/365)

Asset turnover=sales/total assets

Debt ratio=total liabilities/total assets

Gross profit margin=(sales-cost of goods sold)/sales=Gross profit/sales

Net profit margin=net income or earnings available for common stockholders/sales

ROA=net income or earnings available for common stockholders/total assets

ROE=net income or earnings available for common stockholders/common stock equity

Current ratio=current assets/current liability