Balance Sheet for J & P Industries
	2018
Current assets
Cash	215
Accounts receivable	310
Inventory	328
Total current assets	853
Fixed assets
Net plant and equipment	6,527
Total assets	7,380
Current liabilities
Accounts payable	298
Notes payable	1,427
Total currrent liabilities	1,725
Long-term debt	2,308
Owners' equity
Common stock and paid in surplus	1,000
Retained earnings	2,347
Total owners' equity	3,347
Total liabilities and owners' equity	7,380

Income Statement for J & P
Sales	4,053.00
Cost of goods sold	2,816.00
Depreciation	550.00
EBIT	687.00
Interest paid	502.00
Taxable income	185.00
Taxes (21%)	38.85
Net income	146.15
Dividends	47.15
Addition to RE	99.00

2 Construct a common size balance sheet in Excel for 2018 and submit the spreadsheet.

3 Construct a common size income statement in Excel for 2018 and submit the spreadsheet. (Click for video on how to construct common size financial statements)

4 Compute the following:

a quick ratio.

b total asset turnover.

c inventory turnover and days/ sales in inventory.

d net profit margin.

e dividend payout ratio.

f net working capital.

g equity multiplier (Total assets/Total equity)

h times interest earned.

i receivables turnover and days sales in receivables.

j return on assets.

k Use the DuPont equation to compute return on equity.