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Income Statement For the Year Ended December 31, 2011 Sales Revenue Less: Cost of Sales Gross Profits Less: Operating Expenses $3,696,000 -2.997,456 698,544 Selling Expense General and Admin Depreciation Expense Total Operating Expense Operating Profits Less: Interest Expense Net Profits before taxes Less: Taxes (35%) Net Profits after taxes Additional Information: Current Price per Share 276 3201 179,5201 52,800 508,640 189,904 -34,320 155,584 -54,454 101,130 $7.50 Current # of shares outstanding 1,000,000 ASSETS Cash Accounts Receivable Inventories Total Current Assets Balance Sheet 31-Dec-11 LIABILITIES 249 300 Accounts Payable 622,120 Notes Payable 637,860 Accruals 1,509,280 Total Current Liabilities Long Term Debt 1,300,000 Total Liabilities -190,000 Common Stock 1.110,000 Retained Earnings Total Equity TOTAL LIAB. AND $2,619,280 EQUITY 233,620 464,620 228,360 926,600 517,1801 1,443,7801 637,500 538.000 1.175.500 Gross Fixed Assets Accumulated Depreciation Net Fixed Assets TOTAL ASSETS $2,619,280 2011 Vanguard Group, Inc. Historical and Industry Average Ratios 2009 2010 1.60 1.70 0.90 1.00 0.28 0.30 Industry 1.60 0.90 0.28 6.00 40 Days 5.00 50 Days 3.40 1.50 8.40 40 Days 3.40 1.75 3.40 1.50 Liquidity Ratios Current Ratio Quick Ratio Cash Ratio Asset Mgt. Ratios Inventory Turnover Days Sales Outstanding Fixed Asset Turnover Total Asset Turnover Debt Mgt. Ratios Debt Ratio Debt to Equity Ratio Times Interest Earned Profitability Ratios Profit Margin Return on Assets Return on Equity Market Value Ratios PE Ratio Market to Book Ratio 0.56 0.60 1.30 2.50 0.50 1.00 4.00 1.27 3.50 0.02 0.03 0.08 0.02 0.04 0.08 0.03 0.05 0.11 13.50 14.00 1.10 16.00 1.40 1.00 Calculate its Debt to Equity Ratio. 1) 2.27 2) 0.81 3) 1.23 4) 1.61 5) 1.33 Question 12 (1 point) Calculate its TIE ratio. 1) 5.53 2) 4.53 ( 3) 3.53 4) 2.53 Calculate its net profit margin. 1) 0.025 2) 0.027 3) 0.013 4) 0.029 Question 14 (1 point) Calcuate its Return on Assets 0.039 0.028 0.032 0.036 Calculate its ROE ratio. 1) 0.079 2) 0.159 3) 0.036 4) 0.086 Question 16 (1 point) Calculate its P/E ratio. 1) 6.95 2) 5.95 3) 74.16 4) 8.03 5) 7.38 Calculate its Market to Book ratio. 1) 6.38 ) 2) 0.64 O 3 3) 0.16 4) 0.07

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