Complete the following:

1. You will need financial statements and information to make the required calculations.

Click on the link below to access the handout with the necessary information.

INCOME STATEMENT Fiction, INC. Sales 2,000,000 Cost of goods sold 1,400,000 Gross profit 600,000 Operating expenses Selling & marketing 100,000 Administrative 80,000 Depreciation 50,000 Total operating expenses 230,000 Operating income (operating profits) 370,000 Interest expense 50,000 Earnings before tax 320,000 Income taxes 80,000 Net income 240,000 Total number of shares outstanding = 100,000 Current market price = $41.40 Earnings per share (EPS) = $2.40 Dividends per share = $1.10

BALANCE SHEET Fiction, INC. Assets Cash 150,000 Accounts receivables 250,000 Inventory 500,000 Total current assets 900,000 Gross plant & equip 2,200,000 Less accumulated depreciation 650,000 Net property, plant, & equip. 1,550,000 Total assets 2,450,000 Debt & Equity Accounts payable 145,000 Accruals 90,000 S.T. Notes 310,000 Total current liabilities 545,000L Long-term debt 625,000 Total debt 1,170,000 Common stockholders equity Common stock par value 100,000 Paid-in capital 300,000 Retained earnings 880,000 Total common equity 1,280,000 Total liabilities & equity 2,450,000

2. Use a spreadsheet software program (such as Microsoft Excel) to calculate and report the following information:

• What is the current ratio of this firm?
• What is the quick ratio of this firm?
• What is the inventory turnover ratio of this firm?
• What is the receivables turnover of this firm?
• What is the total asset turnover of this firm?
• What is the times interest earned (TIE) of this firm?
• What is the total debt ratio of this firm?
• What is the return on equity (ROE) of this firm?
• What is the return on assets (ROA) of this firm?
• What is the market-to-book ratio of this firm?
• What is the price-to-earnings (P/E) ratio of this firm?