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HCS/385
Mason Medical
Balance Sheet	31-Dec-14		31-Dec-13
Cash	$52,000		$60,000
Accounts Receivable	198000		80000
Marketable Securities	80000		40000
Inventories	440000		360000
Prepaids	3000		7000
Total Current Assets	773000		547000
Property, Plant, and Equipment, net	857000		853000
Total Assets	$1,630,000		$1,400,000
	===========		===========
Current Liabilities	$240,000		$160,000
Bonds Payable	400000		400000
Common Equity	990000		840000
Total Liabilities & Equity	$1,630,000		$1,400,000
	===========		===========
Income Statement	2014		2013
Sales	$1,640,000		$1,574,000
Cost of Goods Sold	800000		725000
Gross Profit	840000		849000
SG&A	440000		430000
Interest Expense	40000		25000
Net Income	$360,000		$394,000
	===========		===========
Key Ratios	2014				Industry Avg
Current Ratio					2.883
Acid Test (Quick Ratio)					0.973
Debt to Asset					0.447
Receivable Turnover					13.492
Inventory Turnover					2.63
Net Profit Margin					0.176
Asset Turnover					1.357
Return on Assets					18%
Return on Equity					22%

Write a 750- to 1,050-word paper in which you summarize the financial performance of the organization. Explain how the ratios are calculated and how the results impact the organization. In addition, explain how the organization is performing compared to the industry averages. Provide rationale using data from the exercises.

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