1. Given the following information, calculate for Year 2 the number of days of working capital financing the firm will need to obtain from other sources?

___________________________________________Year 1__________________Year 2

Accounts Receivable, net...................................$ 518............................$ 562

Accounts Payable.............................................203.................................192

Inventory......................................................535.................................564

Credit Sales.................................................3,205...............................3,636

Cost of Goods Sold.......................................2,037...............................2,294

Selling and Admin. Expense..............................1,081..............................1,131

2. Refer to the financial statement data for Patriot Corp. for 2011 and 2010. Complete the table by computing the ratios.

Financial Ratio to be calculated:

Total liabilities and stockholders' equity:$575,000$425,000

Patrlot Corp. Balance Sheet As of December 31, 2011 2010 Assets: S 69,000 $ 55,250 Cash and Cash Equivalents Accounts Receivable 126,500 80,750 92,000 Inventory 63,750 Current Assets 287,500 199,750 Equipment 194,063 148,750 Less: Accumulated depreciation -38,813 -29,750 Equipment-Net 155,250 119,000 Land 106,250 132,250 $575,000 $425,000 Total assets: Llabilitles: Accounts Payable S 69,000 $ 42,500 Accrued Salaries Payable 42,500 51,750 Rent Expense Payable 28,500 35,750 Income Tax Payable 4,788 1,250 Current Liabilities 114,750 161,288 Long-term note payable 172,500 102,000 Total Liabilities 216,750 333,788 Stockholders' Equlty: Common stock 89,250 115,000 Retained earnings 119,000 126,212 Total llablitles and stockholders' $575,000 $425,000 equity: Patrlot Corp. Income Statement For the year ended December 31, 2011 Revenues $ 373,750 Cost of goods sold (224,250) Gross Profit $149,500 Operating Expenses Depreciation expense (9,062) Salary expense (56,063) Insurance Expense (44,850) Rent Expense (18,688) Interest Expense (6,120) Total Operating Expenses (134,783) Income from Operations 14,717 Income Tax Expense (4415) Net income $ 10,302 Dividends paid to Common Shareholders S 3,090