Apple Inc Jamison must prepare an analysis of where the company is now, what it must do to regain its financial health, and what actions should be taken. Your assignment is to help her answer the following questions. Income Statement Balance Sheet Sales $20,000,000 Assets: Cost of Goods Sold 8,000,000 Cash $ 5,000,000 Gross Profit 12,000,000 Marketable Securities 12,500,000 Selling and Administrative 1,600,000 Accounts Receivable, net 2,500,000 Depreciation 3,000,000 Inventory 30,000,000 EBIT 7,400,000 Prepaid Expenses 5,000,000 Interest 2,000,000 Plant & Equipment 30,000,000 Income Before Taxes 5,400,000 Taxes (40%) 2,160,000 Total Assets 85,000,000 Net Income 3,240,000 Preferred Stock Div. 500,000 Liabilities and Equity: Earnings Available 2,740,000 Accounts Payable $20,000,000 Common Stock Div. 600,000 Notes Payable 5,000,000 $ 2,140,000 Accrued Expenses 5,000,000 Bonds Payable 20,000,000 Preferred Stock 15,000,000 Common Stock 5,000,000 Capital in Excess of Par 10,000,000 Retained Earnings 5,000,000 Total Liabilities and Equity $85,000,000 Shares outstanding of common stock = 1,000,000 Shares outstanding of preferred stock = 500,000 Market price of common stock = $18. Question 1 Use the following balance sheet and income statement and calculate the following ratios –

Please show work. 2014 Current ratio

Inventory turnover

Total asset turnover

Operating profit margin

Operating return on assets

Debt ratio

Average collection period

Fixed asset turnover

Return on equity