In the Appendix (Chapter 16 Appendix: A Sample Business Plan (Links to an external site.)Links to an external site.), you will find the income statements and balance sheets for Franks All-American BarBeQue for the years 2006 to 2010. Compute some of the key financial ratios (at least six ratios) for this business and discuss the meanings of any trends. Compute at least one ratio from each of the following categories: liquidity ratios, financial leverage ratios, profitability ratios, asset management or efficiency ratios, and market value ratios.

Past Performance	2008	2009	2010
Sales	$1,637,610	$1,696,564	$1,793,268
Gross margin	$851,557	$909,358	$943,259
Gross margin %	52.00%	53.60%	52.60%
Operating expenses	$542,080	$577,315	$600,408
Inventory turnover	13.20	12.10	12.90
Balance Sheet	2008	2009	2010
Current Assets
Cash	$102,665	$125,172	$102,665
Inventory	$391,238	$331,045	$345,678
Other current assets	$278,372	$230,074	$278,372
Total current assets	$772,275	$686,291	$726,715
Long-Term Assets
Long-term assets	$504,580	$388,820	$423,675
Accumulated depreciation	$180,856	$135,739	$145,765
Total long-term assets	$323,724	$253,081	$277,910
Total assets	$1,095,999	$939,372	$1,004,625
Current Liabilities
Accounts payable	$155,534	$132,206	$145,321
Current borrowing	$170,000	$150,000	$135,000
Other current liabilities (interest free)	$81,888	$63,972	$74,329
Total current liabilities	$407,422	$346,178	$354,650
Long-term liabilities	$220,000	$190,000	$175,000
Total liabilities	$627,422	$536,178	$529,650
Paid-in capital	$75,000	$75,000	$75,000
Retained earnings	$281,838	$234,377	$287,114
Earnings	$111,739	$93,817	$112,861
Total capital	$468,577	$403,194	$474,975
Total capital and liabilities	$1,095,999	$939,372	$1,004,625
Other Inputs
Payment Days	30	30	30

Assets	2011	2012	2013	2014	2015
Current Assets
Cash	$1,172,844	$2,209,415	$3,521,573	$4,979,631	$6,591,014
Inventory	$72,421	$79,197	$109,296	$117,245	$125,954
Other current assets	$278,372	$278,372	$278,372	$278,372	$278,372
Total current assets	$1,523,636	$2,566,983	$3,909,241	$5,375,249	$6,995,341
Long-Term Assets
Long-term assets	$583,675	$583,675	$583,675	$583,675	$583,675
Accumulated depreciation	$145,765	$145,765	$145,765	$145,765	$145,765
Total long-term assets	$437,910	$437,910	$437,910	$437,910	$437,910
Total assets	$1,961,546	$3,004,893	$4,347,151	$5,813,159	$7,433,251
Liabilities and Capital	2011	2012	2013	2014	2015
Current Liabilities
Accounts payable	$189,416	$193,009	$259,021	$275,791	$296,597
Current borrowing	$135,000	$135,000	$135,000	$135,000	$135,000
Other current liabilities	$20,329	($33,671)	($87,671)	($87,671)	($87,671)
Subtotal current liabilities	$344,745	$294,338	$306,350	$323,120	$343,926
Long-term liabilities	$262,400	$174,800	$174,800	$174,800	$174,800
Total liabilities	$607,145	$469,138	$481,150	$497,920	$518,726
Paid-in capital	$75,000	$75,000	$75,000	$75,000	$75,000
Retained earnings	$399,975	$1,279,402	$2,460,755	$3,791,002	$5,240,239
Earnings	$879,427	$1,181,354	$1,330,246	$1,449,237	$1,599,285
Total capital	$1,354,402	$2,535,755	$3,866,002	$5,315,239	$6,914,524
Total liabilities and capital	$1,961,546	$3,004,893	$4,347,151	$5,813,159	$7,433,251
Net worth	$1,354,402	$2,535,755	$3,866,002	$5,315,239	$6,914,524