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2. Use this information for New Tech Company to answer the following question. You may (or may not) need to fill in missing information. NEW TECH COMPANY Income Statement Sales Cost of goods sold Depreciation General, sales & admin expenses Taxes Net Income 2010 100 50 20 70 2011 110 51 20 65 2012 120 52 20 60 10 10 10 2010 40 2011 45 55 2012 40 60 60 Balance Sheet Current Assets Property, plant & equipment Total Assets Current Liabilities Long-Term Liabilities Equity Total Liabilities & Equity 40 40 10 35 15 50 50 50 2012 2011 1.5 60% 1 INDUSTRY AVERAGE RATIOS 2010 CR (Current Ratio) 1.5 DR (Debt Ratio)=TL/TA 60% TAT (Total Asset Turnover) PM (Profit Margin) Sales Growth 3% Profit Growth 5% 60% 2.5 2.2 4% 5% 2.50% 25% 6% 3% 20% Which of the following items characterize New Tech Company? (It may be more than one option). EXPLAIN (and report your calculations) (20 points) 1. High debt & unprofitable 2. Low debt & unprofitable 3. Decreasing profit margin 4. High Asset Utilization Performance 5. Low Asset Utilization Performance 6. Increasing sales with a decreasing sales growth rate 7. 1, 3 and 5 characterize New Tech Company