Question 8: In the Appendix (Chapter 16 "Appendix: A Sample Business Plan"), you will find the income statements and balance sheets for Franks All-American BarBeQue for the years 2008 to 2010. Compute any five key financial ratios for this business and discuss the meanings of any trends.

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