Based on the information for the T. P. Jarmon

Company for the year ended December 31, 2015 (see page 96):

a. How much is the firm's net working capital, and what is the debt ratio?

b. Complete a statement of cash flows for the period. Interpret your results.

c. Compute the changes in the balance sheets from 2014 to 2015. What do you learn about T. P. Jarmon from these computations? How do these numbers relate to the statement of cash flows?

T. P. Jarmon Company Balance Sheet for 12/31/2014 and 12/31/2015

T. P. Jarmon Company Income Statement for the Year Ended 12/31/2015

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Assets 2014 15,000 6,000 2015 14,000 6,200 33,000 84,000 1100 Marketable securities Accounts recevable 51,000 S 1200 Prepaid rent Total current assets Net plant and equipment Total assets Liabilities and Equity 2014 48,000 6,000 2015 57,000 5,000 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stockholders' equity Total liabilities and equity $183,300 401.200 Sales Less cost of goods sold Gross profit Operating and interest expenses $600,000 460,000 140,000 ($30,000) (10,000) General and administrative Depreciation Total operating and interest expenses Earnings before taxes Taxes Net income available to common stockholders Cash dividends Change in retained earnings 70,000 27,100 42,900 31800