Overtake Financial Group is a large corporation whose sole activity is the acquisition of quality subsidiary companies. You are a senior analyst for Overtake, and your manager has just come to you with the following financial statements for Burning
Corn Company, an ethanol producing firm based in Nebraska, which is currently trading at $5 per share. He wants you to analyze the company and give a recommendation on whether or not to submit a bid for Burning Corn.

Required
Prepare a brief written analysis of Burning Corn's profitability, liquidity, and solvency. Include a table of calculated ratios and your recommendation on whether Overtake should bid on the company. Round percentages to one decimal point (i.e., 12.8%).

Burning Corn Company Comparative Balance Sheet at December 31 2012 2011 10000 s 20,000 Cash Accounts receivable inventory Prepaid insurance 30,000 45,000 05,000 75,000 5,000 15,000 150,000 55,000 375,000 325,000 40,000 320,000 285,000 5470,000 $440,000 60,000 50,000 Total current assets Property and equipment Accumulated depreciation 55,000 Total property and equipment Total assets Accounts payable Notes payable 80 Jar 2300 S3500 25,000 85,0005,0 Total current liabilitie Bonds payable 280,000 280,000 365,000 355,000 Total liabilities Common stock (Avg. 100,000 shares outstanding) Retained earnings 75,000 75,000 0,00010,000 85,000 Total stockholders' equity Total liabilities and stockholders' equity 105,000 $470,000 $440,000 Burning Corn Company 2012 Income Statement Sales 5250,000 150,000 5100,000 25,000 15,000 40,000 60,000 10,000 50,000 25,000 25,000 Cost of goods sold Gross profit Administrative expenses Depreciation expense Total operating expenses Operating income Interest expense Income before taxes Income tax expense Net income