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Section $3\mathrm{.}3$

Refer to the financial statements below to answer the questions following.

Income Statement

Sales: $$5,500,000$

CoGS: $2,850,000$

Depreciation: $280,000$

SGA: $1,500,000$

EBIT: $870,000$

Interest Expense: $130,000$

Taxable Income: $740,000$

Taxes: $330,000$

Net Income: $410,000$

Balance Sheet $($Year$-$End$)$

Assets $20212020$

Cash $ $50,000$ $ $40,000$

Accounts Receivable $660,000690,000$

Inventory $490,000480,000$

Total Current Assets $1,200,0001,210,000$

Fixed Assets $3,100,0002,800,000$

Total Assets $4,300,0004,010,000$

Liabilities

Accounts Payable $340,000450,000$

ST Debt $480,000550,000$

Total Current Liabilities $820,0001,000,000$

LT Bonds $2,520,0002,200,000$

Total Liabilities $3,340,0003,200,000$

Shareholder$$s Equity

Common Stock $310,000310,000$

Retained Earnings $650,000500,000$

Total Shareholder$$s Equity $960,000810,000$

Liabilities and Shareholder$$s Equity $4,300,0004,010,000$

$1.$ Calculate the following for each year:

a$.$ Inventory Turnover Ratio $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

b$.$ Capital Structure Ratio $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

c$.$ Average Collection Period $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

d$.$ Times Interest Earned Ratio $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

e$.$ ROE $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

f$.$ ROIC $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

g$.$ P$/$E Ratio $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

h$.$ Free Cash Flow to Firm $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

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