Based on the information for T. P. Jarmon Company for the year ended December 31, 2012:
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 2011 to 2012. 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 12/31/2011 and 12/31/2012 ASSETS 2011 2012 Cash Marketable securities Accounts receivable Inventory Prepaid rent Total current assets Net plant and equipment Total assets 15,000 6,000 42,000 51,000 $ 1,200 115,200 286,000 $401 200 LIABILITIES AND EQUITY 14,000 6,200 33,000 84,000 1100 $138,300 270,000 408 300 2011 2012 S 48,000 6,000 15,000 69,000 $160,000 $172,200 $401,200 57,000 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stockholders' equity Total liabilities and equity 5,000 13,000 75,000 $150,000 $183,300 $408,300 T. P. Jarmon Company Income Statement for the Year Ended 12/31/2012 Sales Less cost of goods sold Gross profit Operating and interest expenses $600,000 460,000 $140,000 General and administrative $30,000 10,000 30,000 Interest Depreciation Total operating and interest expenses Earnings before taxes Taxes Net income available to common stockholders Cash dividends Change in retained earnings s 70,000 $ 70,000 27100 42,900 31,800 S 11,100