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Required: 1) What is the current ratio for ALRawabi Dairy Products in 2099? 2) What is the net working capital for ALRawabi Dairy Products in 2010? 3) What is the inventory turnover for ALRawabi Dairy Products in 2010? 4) What is the average collection period for ALRawabi Dairy Products in 2010? 5) What is the debt ratio for ALRawabi Dairy Products in 2010? 6) What is the gross profit margin for ALRawabi Dairy Products in 2010? 7) What is the net profit margin for ALRawabi Dairy Products in 2010? 8) What is the return on total assets for ALRawabi Dairy Products for 2010? 9) What is the return on equity for ALRawabi Dairy Products for 2010? 10) Using the modified DuPont formula allows the analyst to break ALRawabi Dairy Products return on equity into 3 components: the net profit margin, the total asset turnover, and a measure of leverage (the financial leverage multiplier). What is the mathematical expressions represents the modified DuPont formula relative to ALRawabi Dairy Products' 2010 performance?

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Answer the following questions for the given financial data (2009 & 2010) of ALRawabi Dairy: Actual 2010 ALRawabi Dairy Products Key Ratios Industry Actual Average 2009 Current Ratio 1.3 1.0 Quick Ratio 0.8 0.75 Average collection Period 23 days 30 days Inventory Turnover 21.7 19 Debt Ratio 64.7 50% Times Interest Earned 4.8 5,5 Gross Profit Margin 13.6% 12.0% Net Profit Margin 1.0% 0.5% Return on total assets 2.9% 2.0% Return on Equity 8.2. 4.0% Income Statement ALRawabi Dairy Products For the Year Ended December 31, 2010 Sales Revenue $100,000 Less: Cost of Goods Sold 87,000 Gross Profits $13,000 Less: Operating Expenses 11,000 Operating Profits $2,000 Less: Interest Expense 500 Net Profits Before Taxes $1,500 Less: Taxes (40%) 600 Net Profits After Taxes 4900 Balance Sheet ALRawabi Dairy Products December 31, 2010 Assets Cash Accounts Receivable Inventories Total Current Assets Gross Fixed Assets $35,000 Less: Accumulated Depreciation 13,250 Net Fixed Assets Total Assets $1,000 8,900 4,350 $14,250 21,750 $36,000 Liabilities & Stockholders' Equity Accounts Payable Accruals Total Current Liabilities Long-term Debt Total Liabilities Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities & Stockholders Equity $9,000 6,675 $15,675 4,125 $19,800 1,000 15,200 $16,200 $36,000

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