You will calculate ratios for each classification for the 3 years of data (i.e., the current ratio may have been 1.5 the first year, 1.35 the second year, and .75 in the most recent year). It is based on these results that you will measure financial performance, or trends, from one year to the next. It is imperative that the ratios numbers, and quantitative outcomes, support your analysis.

1. Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the liquidity ratios and an assessment of the companys ability to maintain liquidity and the management of current assets and current liabilities. Include the proper assessment of outcomes as positive or negative trends when all ratio outcomes are factored as a group.

Liquidity Ratios

• Current Ratio
• Quick Ratio

2. Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the activity ratios and an assessment of the companys ability to maintain liquidity. Include the proper assessment of outcomes as positive or negative trends when all four ratio outcomes are factored as a group.

Activity Ratios

• Inventory Turnover
• Accounts Receivables Turnover
• Total Asset Turnover
• Average Collection Period

1. Using the data from the Income Statement and Balance Sheet, provide the correct calculation of the financing ratios. Include the proper assessment of outcomes as positive or negative trends when all three ratio outcomes are factored as a group.

Financing Ratios

• Debt Ratio
• Debt-to-Equity Ratio
• Times Interest Earned Ratio

4. Using the data from the price per share data, the Income Statement, and the Balance Sheet, provide the correct calculation for the market value ratios below.

Market Value Ratios

• Earnings per Share (EPS)
• Price Earnings (PE)

5. Using the data from the Income Statement and Balance Sheet, provide the correct calculation of these four profitability ratios and an assessment of the companys ability to maintain, if not improve, profitability based on the amounts of equity, assets, and levels of profits from sales. Include the proper assessment of outcomes as positive or negative trends when all four ratio outcomes are factored as a group.

Profitability Ratios

• Return on Equity (ROE)
• Return on Assets (ROA)
• Net Profit Margin
• Operating Profit Margin

AutoSave OFF OFF A B 2.0- ... Home Insert Draw Page Layout Formulas Data Review [A Calibri (Body) 12 Paste BIU fx ABC Company Income Statement B D F H ABC Company Income Statement 31-Dec-15 31-Dec-14 31-Dec-13 $485,651,000 $476,294,000 $475,210,000 365,086,000 358,069,000 120,565,000 118,225,000 93,418,000 91,353,000 27,147,000 26,872,000 113,000 115.000 ]]] 27,034,000 26,753,000 350.400.000 124,810,000 90,343,000 34,467,000 115,000 34,352,000 2,200,000 32,152,000 9,800,000 22,352,000 182,000 2,461,000 2,335,000 24,573,000 24,418,000 7,985,000 8,105,000 16,588,000 16,313,000 285,000 144,000 $16,303,000 $16,169,000 $22,170,000 $10.00 $9.00 $8.50 A1 X A 2 3 Period Ending 4 Total Sales 5 Cast of Goods Sold 6 Gross Profit 7 Selling Generall and Adminstrative 8 Operating Profit 9 Total Other Income/Expenses Net 10 Earnings before Interest and Taxes 11 Interest Expense 12 Income Before Tax 13 Income Tax Expense 14 Net Income from Continuing Ops 15 Discontinued Operations 16 Net Income (Net Profit) 17 14,000,000 Shares outstanding 18 Market Share price per share 19 20 21 ABC Company Balance Sheet 22 Period Ending 23 Assets 24 Current Assets 25 Cash and Cash Equivalents 26 Net Receivables 27 Inventory 28 Other Current Assets 29 Total Current Assets 30 Property Plant and Equipment 31 Goodwill 32 Other Assets 33 Total Assets 34 35 36 37 38 39 40 41 Ready A Income Statement-Balance Sheet E 2015 $9,135,000 6,778,000 45,141,000 2,224,000 63,278,000 116,655,000 18,102,000 5,671,000 203,706,000 Ratio Calculations View Tell me G 2 Wrap Text MT217M2 Workbook General $ * % 9 Merge & Center v J 2013 $6,799,000 2014 $7,281,000 6,677,000 6,525,000 44,858,000 43,989,000 2,369,000 2,199,000 Long term Debt 61,185,000 117,907,000 59,502,000 120,300,000 Monority Interest 17,900,000 Total Liabilities 19,510,000 6,149,000 4,500,000 204,751,000 202,202,000 Appendix A + to on Current Liabilities Accounts Payable Other current Liabilities Short-term Debt Total Current Liabilities Deferred Long-term Liability charges Miscellaneous Stock Options Warrants Common Stock Retained Earnings Captial Surplus Other Stockholders Equity Total Stockholders Equity Total Liabilities & Stockholders Equity # of Shares Outstanding Market share price per share L Conditional Format Cell Formatting as Table Styles M N 2015 58,583,000 6,689,000 65,272,000 43,692,000 8,805,000 4.543.000 122,312,000 323,000 85,777,000 2,462,000 -7,158,000 81,394,000 203,706,000 14,000,000 $10.00 2014 57,174,000 89,000 17,087,000 69,345,000 44,559,000 8,017,000 5,084,000 127,005,000 0 323,000 76,566,000 2,362,000 -1,505,000 77,746,000 204,751,000 14,000,000 $9.00 0 Insert v Delete Format v P * A