Mt3550 - National American Corporation

National American CorporationBalance SheetDecember 31, 201XAssetsCurrent Assets:CashMarketable SecuritiesAccounts Receivable Less: Allowance for bad debtInventory Total Current AssetsFixed Assets:Plant and equipmentLess: Accumulated depreciationNet Plant and EquipmentTotal AssetsLiabilities and Stockholders' EquityCurrent Liabilities:Accounts PayableNotes Payable Total Current LiabilitiesLong Term Liabilities Total LiabilitiesStockholders' Equity Total Stockholders' EquityTotal Liabilities and Stockholders' EquityRetained EarningsIncome StatementFor the year ending December 31, 201XSales (all on credit)Cost of goods soldGross profitSelling, general & administrative expenseOperating profitInterest expenseExtraordinary lossNet income before taxesTaxes (33% marginal tax bracket)Net income SGA expense includes $50,000 lease expenseMortgage PayableCommon Stock, $1 par value, 400,000 sharesProfitability Ratios:1. Profit Margin = Net Income / Total Sales2. Return on assets = Net Income / Total Assets3. Return on equity = Net Income / Stockholders' EquityAsset Utilization Ratios:4. Receivables turnover = Sales on credit / accounts receivable5. Average collection period = Accounts receivable / Average daily credit sales6. Inventory turnover = Sales / Inventory7. Fixed asset turnover = Sales / Fixed assets8. Total asset turnover = Sales / Total assetsLiquidity Ratios:9. Current ratio = Current assets / Current liabilities10. Quick ratio = Current assets - inventory / current liabilitiesDebt Utilization Ratios:11. Debt to total assets = Total debt / Total assets12. Times interest earned = Income before interest and