2. NuCo Inc. Financial Statement Income StatementIncome Statement Balance SheetBalance Sheet RatiosRatios

3. Income Statement Operating ExpensesOperating Expenses –Salary Expense ($7,500) –Advertising Expense ($200) RevenueRevenue –Sales of Goods $9,500 –Service Revenue $42,600 –Total Revenue $52,100 –Cost of Goods Sold ($6,000) –Gross Margin $46,100

4. Income Statement –Phone Expense ($800) –Insurance Expense ($500) –Total Operating Expense ($9,000) Net Income before Interest and Taxes $37,000Net Income before Interest and Taxes $37,000 –Interest Expense ($500) Net Income before Taxes $36,600Net Income before Taxes $36,600 –Income Tax Expense ($14,640) Net Operating Income $27,960Net Operating Income $27,960

5. Balance Sheet AssetsAssets –Current Assets Cash $52,360 Accounts Receivable $7,000 Inventory $1,000 Prepaid Expenses $1,000 Total Current Assets $61,360

6. Balance Sheet –Long Term Assets Land $40,000 Building $60,000 Total Long Term Assets $100,000 Liabilities and Stockholders EquityLiabilities and Stockholders Equity LiabilitiesLiabilities –Current Liabilities Unearned Revenues $400 Total current Liabilities $400

7. Balance Sheet –Non-Current Liabilities Mortgage Payable $45,000 Total Non-Current Liabilities $45,000 –Total Liabilities $45,500 Stockholders, EquityStockholders, Equity –Common Stock $100,000 –Retained Earnings $15,960 –Total Stockholders’ Equity $115,960 Total Liability and Stockholders’ Equity $161,360Total Liability and Stockholders’ Equity $161,360

8. Ratios LiquidityLiquidity –Current Ratio 153.40 –Quick Ratio 148.40 Long Term Solvency RatiosLong Term Solvency Ratios –Debt Ratio 28% –Equity Ratio 72% –Long-Term Debt (LTD) Ratio 28% –Times Interest Earned 74.20

9. Ratios Asset Management RatiosAsset Management Ratios –Asset Turnover 0.32 times –Accounts Receivable Turnover 7.44 times –Days, Sales in Receivable 40.04 Days Asset Management Ratios Cont.Asset Management Ratios Cont. –Inventory Turnover 6.00 times –Days’ Sales in Inventory 60.83 days

10. Ratios Asset Management Ratios Cont.Asset Management Ratios Cont. –Inventory Turnover 6.00 times –Days’ Sales in Inventory 60.83 days Profitability RatiosProfitability Ratios –Gross Profit Ratio 88% –Profit Margin 42% –Return on Assets (ROA) 14% –Return on Equity (ROE) 19% Stock Return RatiosStock Return Ratios –Dividend Payout 27