Please answer the questions below:

1. Construct a statement of financial position (balance sheet) for the Humperdink family using the following information:

cash	$50
Checking account	$2,500
student loan balance	$6,000
stocks and bonds	$2,600
savings account	$5,850
residence	$110,000
automobile	$12,000
savings account	$5,800
automobile loan balance	$12,000
401K retirement account	$15,000
furniture, clothing, jewelry	$8,000
credit card balance	$4,000
mortgage loan balance	$99,000

2. What is the purpose of financial statement analysis? How do the three types of financial statement analysis differ from each other and when is each used?

3. Samantha Knight is applying for a small-business loan. She provides the bank with the following information:

cash in checking accounts	$5,000
cash in savings	$10,350
home market value	$145,500
first mortgage on house	$25,000
home equity loan limit	$70,000
home equity loan	$10,000
automobile market value	$19,000
automobile loan outstanding	$15,000
credit card debt	$1,500

a. Calculate the debt-to-asset ratio.

b. Calculate the debt-to-equity ratio.

c. What percentage of Samantha's assets is owned by others?

4. Given the profit loss (income statement) and balance sheet for Sam's Sandwich Delivery (see attached picture below), answer the following:

a. Calculate the following ratios: current, quick, accounts receivable turnover, fixed asset turnover.

b. Using the inventory figure on the balance sheet as average inventory, calculate the inventory turnover ratio.

c. Calculate the debt-to-equity ratio, debt-to-total asset ratio, and operating profit margin ratio.

d. Perform a vertical analysis of the income statement.

e. Perform a vertical analysis of the balance sheet.

f. Based on your analysis, would you consider investing in Sam's Sandwich Delivery?

Exercises and Probs 121 TABLE 4-8 Financial Statements for Sam's Sandwich Delivery Profit Loss (Income Statement) for Six Months Ending June 30, 2013 Revenues Retail Sales $68,283 Wholesale Sales Total Revenues Cost of Sales Gross Profit 104,417 52,067 111,117 $172,700 $120,633 $ 9,516 Total Operating Expenses Operating Profit Other Income/Expenses Interest Income Interest Expense Depreciation-Store Equipment (651) 902 Total Other Income/Expenses Net Profit 8,614 Balance Sheet as of 06-30-2013 Assets Current Assets Change Fund Cash in Bank-Checking Cash in Bank-Savings Accounts Receivable Inventories $ 569 8,612 9,622 6,843 2,607 $28,253 Total Current Assets Fixed Assets 4,296 4,110 68,293 67,725 31,168 11,571 Furniture and Fixtures Less: Accum Depreciation Equipment 186 568 19,597 Less: Accum Depreciation Transportation Equipment Less: Accum Depreciation Total Fixed Assets Total Assets $20,351 $48,604 Current Liabilities Accounts Payable Trade Accrued Payroll Taxes Accrued Sales Taxes 6,208 3,464 987 Total Current Liabilities $10,659 Long-Term Liabilities Auto Loans Payable 18,626 Total Long-Term Liabilities $18,626 $29,285 Total Liabilities Stockholder's Equity 83,081 (72,376) 8,614 Common Stock Retained Earnings Net Profit/Loss Total Equity Total Liabilities and Equity 19,319 48,604