Cash from Operating Activities: ______________

Cash from Investing Activities: ______________

Cash from Financing Activities: ______________

Problem 2: Financial Ratios

The GAP Macys

1 Current Ratio		1.18
2 Quick/Acid Test Ratio		.19
3 Working Capital $millions		$ 1,060
4 Inventory Turnover in Days		126 days
5 Gross Profit %		40.1%
6 Operating Income %		3.8%
7 Profit Margin %		2.2 %
8 Asset Turnover		1.26
9 Return on Assets		2.8%
10 Return on Stockholders Equity		8.8%
11 Earnings Per Share		$ 1.83
12 Dividend Payout Ratio		83.1%
13 Price to Earnings Ratio		8.37
14 Debt/Assets Ratio		.70
15 Times Interest Earned		4.55

Problem 1: (15 points)

A comparative balance sheet for Bobcat CBD, Inc. appears below:

Bobcat CBD, Inc.

Comparative Balance Sheets as of

Dec. 31, 2019 Dec. 31, 2018

Assets

Cash $ 100,000 $ 20,000

Accounts receivable 25,000 65,000

Inventory 65,000 40,000

Equipment 30,000 60,000

Accumulated depreciationequipment (20,000) (35,000)

Total assets $ 200,000 $ 150,000

Liabilities and Stockholders' Equity

Accounts payable $ 30,000 $ 10,000

Bank Loan (due in 2024) 40,000 50,000

Common stock 50,000 50,000

Retained earnings 80,000 40,000

Total liabilities and stockholders' equity $ 200,000 $ 150,000

Additional information:

Net Income was $ 50,000 for the year ending December 31, 2019.

Equipment was sold during the year for $ 15,000. The original cost was $ 30,000

and the accumulated depreciation on the equipment at the time of sale was $ 25,000.

Depreciation Expense was $ 10,000 in 2019.

Cash dividends of $ 10,000 were declared and paid during the year.