The last two years of financial statements for Carver Industries
The last two years of financial statements for Carver Industries are as follows:
Carver Industries
Balance Sheets for December 31, 2012 and 2013


Carver Industries
Income Statements
Years Ending December 31, 2012 and 2013


a. Calculate the following financial ratios for 2012 and 2013:


b. Evaluate the firm’s financial position at the end of 2012 in terms of its liquidity, capital structure, asset management efficiency, and profitability.
c. At the end of 2013 the firm has 5,000 shares of common stock outstanding, selling for $15 each. What were the firm’s (i) earnings per share, (ii) price-earnings ratio, and (iii) market-to-book ratio?
d. What observations can you make about the financial condition and performance of the firm from your answers to parts a throughc?
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