Table 3.1 in Chapter 3 presents financial statements over the period 2018 through 2021 for R&E Supplies, Inc.

a. Use these statements to calculate as many of the ratios in Table 2.2 as you can.

b. What insights do these ratios provide about R&E’s financial performance? What problems, if any, does the company appear to have?

TABLE 2.2 Ratio Analysis of Polaris Inc., 2016–2020, and Industry Averages, 2020

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TABLE 3.1 Financial Statements for R&E Supplies, Inc., December 31, 2018-2021 ($ thousands) Income Statements Net sales Cost of goods sold Gross profit Expenses: General, selling, and administrative expenses Net interest expense Earnings before tax Tax Earnings after tax Assets Current assets: Cash and securities Accounts receivable Inventories Prepaid expenses Total current assets Net fixed assets 2018 $11,190 2019 2020 2021* $13,764 $16,104 $20,613 9,400 11,699 13,688 17,727 1,790 2,065 2,416 2,886 1,198 100 492 123 $369 Balance Sheets $ 671 1,343 1,119 14 3,147 128 1,431 103 531 133 $ 398 $ 551 1,789 1,376 12 3,728 124 1,795 2,408 110 90 511 388 128 97 $ 383 $ 291 $644 2,094 1,932 15 4,685 295 $412 2,886 2,267 18 5,583 287