Ratio Analysis $(30$ Points$)$

Given the following data, calculate the specified ratios:

Current Assets: $$120,000$

Inventory: $$40,000$

Current Liabilities: $$60,000$

Total Liabilities: $$200,000$

Net Income: $$25,000$

Sales: $$150,000$

Total Assets: $$400,000$

Total Equity: $$200,000$

Market Price per Share: $50$

Shares Outstanding: $10,000$

Current Ratio:

Quick Ratio:

Debt Ratio:

Profit Margin on Sales:

Return on Assets $($ROA$)$:

Return on Equity $($ROE$)$:

Price$-$to$-$Earnings $($P$/$E$)$ Kautu:

Market$-$to$-$Book Ratio:

Section III: Time Value of Money $(40$ Points$)$

Future Value and Present Value $(15$ Points$)$

a$.$ You plan to invest $$8,000$ in an account that offers a

$7\%$ annual interest rate, compounded annually. What

will be the value of this investment at the end of $20$

years?

Future Value:

$(5$ Points$)$

b$.$ You need $$50,000$ for a down payment on a house in

$15$ years. If you can invest in an account that offers an

$8\%$ annual interest rate, how much should you invest

today?

Present Value:

$(5$ Points$)$

c$.$ A car dealership offers a promotion where you can

buy a car today for $$30,000,$ or pay $$35,000$ in $3$ years.

Assuming a discount rate of $6\%,$ which option has a

lower present cost? Show your calculations.

Better Option:

$(5$ Points$)$