1) Company XYZ Balance Sheet Assets Liabilities Cash $10000 Accounts P

1) Company XYZ

Balance Sheet

Assets Liabilities

Cash $10000 Accounts Payable $17000

Marketable Securities 20000 Notes Payable 15000

Accounts Receivable 35000 Accrued Wages 10000

Inventory 30000 Bank Loan 45000

Net Plant & Equipment $105000 Total Liabilities $87000

Owners Equity

Common Stock $75000

Retained Earnings 38000

Total Owners Equity $113000

Total Assets $200000 Total Liabilities & Owners Equity $200000

Sales during the year were $500000.

Net Income for the year was $40000.

Market Price per share is currently $30.00.

Interest expense for the year was $5000.

Earnings before taxes were $60000.

Shares of Common Stock 10000

Based on the above information calculate and interpret the following ratios:

1)Current Ratio

2)Quick Ratio

3)Days Sales Outstanding

4)Total Asset Turnover

5)Total Debt Ratio

6)Profit Margin

7)ROA

8)ROE

9)Fixed Asset Turnover

10) Price Earnings Ratio

11) Market to Book Value

12) Based on the ratio analysis you just conducted how good of financial shape do think this firm is in? Why?

13) When will a firms ROA and ROE be equal to one another?