Problem 3 - 20 Points
Given the following Information on ABC Corp, calculate the ratios below (Show work)
ABC Corp. Year end statements		Balance Sheet 12/31/12						Balance Sheet 12/31/13
ASSETS	2012		LIABILITIES	2012		ASSETS	2013		LIABILITIES	2013
Cash	$ 2,000,000		Accounts Payable	1,000,000		Cash	3,000,000		Accounts Payable	1,000,000
Accounts Recievable	2,000,000		Current portion of LTD	1,000,000		Accounts Recievable	2,000,000		Current portion of LTD	1,000,000
Inventory	3,000,000		Accrued Liabilities	1,000,000		Inventory	3,000,000		Accrued Liabilities	1,000,000
Total Current Assets	7,000,000		Total Current Liabilities	$ 3,000,000		Total Current Assets	8,000,000		Total Current Liabilities	3,000,000
Property Plant & Equipment, net	8,000,000		Long Term Debt (LTD)	9,000,000		Property Plant & Equipment, net	8,000,000		Long Term Debt (LTD)	9,000,000
Other Assets	2,000,000		Shareholder's Equity	5,000,000		Other Assets	2,000,000		Shareholder's Equity	6,000,000
Total Assets	$ 17,000,000		Total Liabilities & Equity	17,000,000		Total Assets	$ 18,000,000		Total Liabilities & Equity	$ 18,000,000
Income Statement FY 12/31
	2013					Answers go in the yellow boxes
Revenue	$ 12,000,000
Cost of Goods Sold	5,000,000					Current ratio 12/31/13		2	(points)
Gross Profit	7,000,000					Accounts Receivable Turnover		2
						Total Asset Turnover		2
Selling General & Admin	2,400,000					Inventory Turnover		2
Research and Development	1,500,000					Liabilities to Equity 12/31/13		2
Depreciation and Amortization	1,500,000					Revenue to Cash		2
Total Operating expenses	5,400,000					Days revenue in Cash		2
						Days Inventory		2
Operating Profit	1,600,000					Return on Assets		2
						Return on Equity		2
Interest Income	100,000
Interest Expense	700,000							20	(total points for answer)
Pre tax Profit	1,000,000
Tax (@35%)	350,000
Net income	$ 650,000