Using the financial statements for Joe's Gadgets in Appendix B, find the listed ratios for the year 2016. Be sure to show the formula and numbers for each ratio.

Financial Ratios

Liquidity Ratios

Current Ratio = Current Assets/Current Liabilities

Quick Ratio = Current Assets - Inventory/ Current Liabilities

Activity Ratios

Inventory Turnover = Cost of Goods Sold/Inventory

Days Sales Outstanding = Accounts Receivable/Sales/365

Fixed Assets Turnover = Sales/Net Property, Plant and Equipment

Total Assets Turnover = Sales/Total Assets

Debt Management Ratios

Total Debt to Total Assets = Liabilities/Assets

Total Debt to Equity = Liabilities/Owners' Equity

Times Interest Earned = EBIT/Interest

Profitability Ratios

Gross Profit Margin = (Sales - Cost of Goods Sold0/Sales

Net Profit Margin = Net Income/Sales

Return on Assets = Net Income/Total Assets

Return on Equity = Net Income/Owners' Equity

Market Values

Price/Earnings Ratio = Market Price per Share/EPS

Market/Book Ratio = Market Price per Share/Book Value per Share

Dividend Yield = Dividend per Share/Market Price per Share

Financial Statement 2016 2017

Sales 15,000,00 20,000,000

COBS 6,000,000 11,000,000

S&A Expenses 3,000,000 3,500,000

Depreciation 2,000,000 2,500,000

EBIT(operating income) 4,000,000 3,000,000

Taxes (30%) 900,00 450,000

Net income 2, 100,000 1,050,000

Number of shares 2,000,000 2,000,000

EPS $1.05 $0.525

Dividends per share $0.50 $0.50

Stock price $25.00 $17.50