Using the financial data below calculate the following ratios: 1) Gross Profit Margin; 2) Net Profit Margin; 3) Return on Assets; 4) Days Sales Outstanding; 5) Quick Ratio. For EACH of these five ratios do the following: 1) calculate the value and 2) interpret the value in about one sentence. TO RECEIVE ANY CREDIT YOU MUST SHOW YOUR WORK, WITHIN THE PROVIDED WORK SPACE. FINAL ANSWERS ONLY WILL NOT CUT IT!

Balance Sheet

ASSETS LIABILITIES

Cash: $1,160,000 Current Liabilities: $173,000

A/R: 335,000 Non-current Liabilities: 4,158,000

Prepaid Expenses: 45,000 Total Liabilities: $4,331,000

Inventories: 92,000 STOCKHOLDERS EQUITY

Other Current Assets: 18,000 Common Stock: $20,000

Total current Assets: $1,650,000 Additional-Paid-In Capital: 580,000

Fixed Assets: $10,360,000 Retained Earnings: 7,196,000

Patents: 117,000 Total Stockholders Equity: $7,796,000

Total Non-current Assets: $10,477,000 Total Liabilities &

Total Assets: $12,127,000 Stockholders Equity: $12,172,000

Income Statement Data

Sales: $23,000,000

Cost of Sales: 14,360,000

Gross Margin: $8,640,000

Operating Expenses: $3,750,000

Operating Income: $4,890,000

Non-operating Expenses: 90,000

Net Income: $4,800,000

*outstanding shares are 1,000,000