| Oceanview Marine Company 2-1 |
| Balance Sheet |
| 31-Dec-15 |
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| Assets | 2015 | 2014 | 2013 | | |
| Current Assts | | | | | |
| Cash | $ 1,320,096 | $ 1,089,978 | $ 1,200,347 | | |
| Accounts Receivable: Notes 2 and 5 | $ 1,646,046 | $ 1,285,593 | $ 1,180,982 | | |
| Inventories * Notes 1a, 3, and 5 | $ 13,524,349 | $ 12,356,400 | $ 11,461,231 | | |
| Prepaid Expenses | $ 17,720 | $ 15,826 | $ 15,275 | | |
| Deposits | $ 7,916 | $ 5,484 | $ 4,329 | | |
| Total Current Assets | $ 16,516,127 | $ 14,753,281 | $ 13,862,164 | | |
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| Property, Plant, Equipment * Notes 1b and 4 | | | | | |
| at cost, less accumulated depreciation | $ 596,517 | $ 612,480 | $ 627,771 | | |
| TOTAL ASSETS | $ 17,112,644 | $ 15,365,761 | $ 14,489,935 | | |
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| LIABILITIES | | | | | |
| Current Liabilites | | | | | |
| Note Payable - Bank * Note 5 | $ 5,100,000 | $ 4,250,000 | $ 4,000,000 | | |
| Accounts payable | $ 1,750,831 | $ 1,403,247 | $ 1,106,574 | | |
| Accrued Liabilities | $ 257,800 | $ 217,003 | $ 211,250 | | |
| Federal Income Tax Payable | $ 35,284 | $ 45,990 | $ 39,725 | | |
| Current portion of long-term debt | $ 5,642 | $ 5,642 | $ 5,642 | | |
| Total Current Liabilities | $ 7,149,557 | $ 5,921,882 | $ 5,363,191 | | |
| Long-Term Liabilities | | | | | |
| Long-Term Debt | $ 409,824 | $ 415,466 | $ 421,108 | | |
| TOTAL LIABILITIES | $ 7,559,381 | $ 6,337,348 | $ 5,784,299 | | |
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| STOCKHOLDERS EQUITY | | | | | |
| Common Stock - * Note 7 | $ 10,000 | $ 10,000 | $ 10,000 | | |
| Additional paid in capital | $ 2,500,000 | $ 2,500,000 | $ 2,500,000 | | |
| Retaind Earnings | $ 7,043,263 | $ 6,518,413 | $ 6,195,636 | | |
| Total Stockholder Equity | $ 9,553,263 | $ 9,028,413 | $ 8,705,636 | | |
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| TOTAL LIABILITIES AND STOCKHOLDER EQUITY | $ 17,112,644 | $ 15,365,761 | $ 14,489,935 | | |
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| Liquidity ratios: | unadjusted 12/31/2015 | unadjusted 12/31/2014 | CHANGE | Percent Change | Industry Average |
| Current Ratio | 2.31 | 2.49 | -0.18 | -7.23% | 1.53 |
| Quick Ratio | 0.42 | 0.4 | 0.02 | 5.00% | 0.43 |
| Sales/Receivable Ratio | 16.05 | 17.78 | -1.73 | -9.73% | 20.29 |
| Number of days sales in A/R | 24.19 | 22.41 | 1.78 | 7.95% | 17.99 |
| Inventory Turnover | 1.95 | 1.85 | 0.10 | 5.60% | 1.41 |
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| PROFITABILITY/PERFORMANCE RATIOS: | | | | | |
| Gross Profit Margin (%) | 0.04 | 0.04 | 0.01 | 19.21% | 39.83% |
| Income before taxes / owners' equity | 0.11 | 0.07 | 0.04 | 57.88% | 0.06 |
| Income before taxes / total assets | 0.06 | 0.04 | 0.02 | 50.00% | 0.04 |
| Sales / Long - term assets | 44.29 | 37.33 | 6.96 | 18.64% | 19.07 |
| Sales / Total Assets | 1.54 | 1.49 | 0.05 | 3.36% | 1.32 |
| Sales / Working Capital | 2.82 | 2.59 | 0.23 | 8.88% | 2.18 |
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| SOLVENCY RATIOS | | | | | |
| Owners Equity / Total Assets | 0.56 | 0.59 | -0.03 | -5.08% | 0.31 |
| Long - Term Assets / owners' Equity | 0.06 | 0.07 | -0.01 | -14.29% | 0.47 |
| Current Liabilities / Owners Equity | 0.75 | 0.66 | 0.09 | 14.10% | 1.13 |
| Total Liabilities / Owners Equity | 0.79 | 0.70 | 0.09 | 12.73% | 2.03 |
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| A. Identify ratios and trends, if any, that cause concern about the client's ability to continue as a going concern. |
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| B. Identify ratios and trends, if any, that indicate a high likelihood that the client will continue successfully as a going concern. |
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| C. Assess the client's financial condition as one of the following (check one) | | | |
| High probability that the company will successfully continue in business for at least two years and be able to pay its debts as they become due. | | | | | |
| Moderate possibility that the company will not successfully continue in business for at least two years and will be unable to pay its debts as they become due. | | | | | |
| High probability that the company will not successfully continue in business for at least two years and will be unable to pay its debts as they become due. | | | | | |
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| D. Briefly explain the reasoning behind your assessment. | | | | |
