Please help 6. Use this information for New Tech Company to answer the following...
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6. 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 T axes Net Income 20102011 100 50 20 70 2012 120 52 20 60 110 51 20 65 10 2012 40 60 Balance Sheet 20102011 40 Current Assets Property, plant Total Assets 45 & equipment 60 40 Current Liabilities Long-Term Liabilities Equit Total Liabilities & Equit 40 10 50 35 15 50 50 INDUSTRY AVERAGE RATIOS 20102011 2012 CR (Current Ratio) DR (Debt Ratio)-TL/TA TAT (Total Asset Turnover) 2 PM (Profit Margin) Sales Growth Profit Growth | 60% 2.5 6% | 3% 20% 60% |60% 4% 3% 5% 2.2 5% 2.50% 25% Which of the following items characterize New Tech Company? (It may be more than one ption). 1. 2. 3. EXPLAIN (and report your calculations) (10 points) Low debt & unprofitable High debt & unprofitable Decreasing profit margin Increasing sales with a decreasing sales growth rate
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