4. A.

Liquidity Ratio
a. Current Ratio 9.90

Current Asset 5,401,770.21

9.90
Current Liabilities 545,679.38

b. Working Capital 4,856,090.83

Current Asset - Current Liabilities 5,401,770.21 - 545,679.38 = 4,856,090.83

c. Quick Ratio 9.52

Cash + Marketable Securities + Trade Receivables (net) 2545020.21 + 2,000,000 + 647,500

Current LIabilities 545,679.38

d. Cash Ratio 8.33

Cash + Marketable Securities 2,545,020.21 + 2000000

8.33
Current Liabilities 545,679.38

e. Cash to Current Assets Ratio 0.84

Cash + Marketable Securities 2,545,020.21 + 2,000,000

0.84
Current Assset 5,401,770.21

f. Cash flow Ratio 0.55

Net cash flow from operating activities 297,936.87

0.55
Current Liabilities 545,679.38

g. Cash flow Liquidity Ratio 8.88

Cash + Marketable Securities + Net Cash flow from Operating Activities

Current Liabilities

h. Defensive Interval Ratio 5.10

Cash + Marketable Securities + Trade Receivables (net) 2,545,020.21 + 2,000,000 + 647,500

Projected Daily Operating Cash Outflow 1,019,070.63
 LOVE CORPORATION
Cash flow Statement
For the year ended December 31, 20x2

Cash flow from Operating Activities

net income
add: non-cash expenses
expenses - deprciation

add (deduct) adjustments

increase in marketable securities
increase in accounts receivable (net)
5020.21 + 2,000,000 + 647,500 increase in merchandise inventory
9.52
545,679.38 decrease in preapid expenses
increase in accounts payable
increase in accrued expenses
increase in income texes payable
decrease in unearned revenue

net cashflow from operating activities

Cash flow form Investing Activity

Increase in Property and Equipment
net cash flow from investing activity

Cash flow from Financing Activities

Payment of long-term loan
Cash dividend paid
net cash flow from financing activities

increase (decrease) in cash

2,545,020.21 + 2,000,000 + 297,936.87 add: cash and cash equivalent, December 31 20x1
545,679.38
Cash and cash equivalents, December 31, 20x2

5,020.21 + 2,000,000 + 647,500

5.10
1,019,070.63
1,047,007.50

270,000
1,317,007.50

-1,000,000
-64,166.67
-4,666.67
5,000
9,333.33
-3,000
33,429.38
5,000
-1,019,070.63
297,936.87

0
0

-500,000

-202,063.13

2,747,083.34

2,545,020.21
B. Solvency Ratio
a.Debt-to-Asset-Ratio or Debt Ratio 0.10

Total Liabilities 545,679.38

0.10
Total Asset 5,401,770.21

b. Equity-to-Asset-Ratio or Equity Ratio 1.30

Total Equity 7,046,090.83

1.30
Total Asset 5,401,770.21

c. Debt-to-Equity-Ratio 0.08

Total Liabilities 545,679.38

0.08
Total Shareholders Equity 7,046,090.83

d. Cash flow to Total Debt Ratio 0.55

Net Cash flwo from Operating Activities 297,936.87

0.55
Total Liabilities 545,679.38

e. Time-Interst-Earned 1.93

Net Profit + Interest + Taxes 1,047,007.5 + 1,612,275 + 448,717.5

Total Interest Charges 1,612,275

f. Financial Leverage Ratio 1.08

Average Total Asset 5,401,770.21

1.08
Average Ordinary Shareholder Equity 5,000,000

g. Financial Leverage Index 0.93

Return on Ordinary Equity 5,000,000

0.93
Return on Asset 5,401,770.21

h. Times Preffered Dividend Requirement Earned 2.09

Net Profit After Tax 1,047,007.50

2.09
Preffered Dividends Requirement 500,000
1.93
C. Operating Ratio
a.Finished Good or Inventory Turnover 24

Cost of Sales 4,662,000

24
Average Finished Goods Inventory 194,250

b. Average Sales Period or Average Age of Inventory 15.21

365 days 365

15.21
Inventory Turnover 24

c. Accounts Receivable Turnover 12

Net Sales 7,770,000

12
Average Accounts Receivable 647,500

d.Average Collection Period or Average Age of Receivables 30.42

365 days 365

30.42
Accounts Receivables Turnover 12

e. Operating Cycle or Conversion Period 45.63

Average Age of Inventory + Average Age of Receivables 15.21 + 30. 45.63

f. Total Assset Turnover 1.44

Net Sales 7,770,000

1.44
Average Total Asset 5,401,770.21

g. Accounts Payable Turnover 12.01

Net Purchases 4,666,666.67

12.01
Average Account Payable 388,500

h. Average Age of Accounts Payable or Average Payment Period 30.39

365 days 365

30.39
Accounts Payable Turnover 12.01

i. Plowback Ratio 0.96

Amounts Available for Investment 1,000,000
0.96
Net Profit 1,047,007.50
D. Profitability Ratio
a. Gross Profit Ration or Gross Margin Ratio 0.40

Gross Profit 3,108,000

0.40
Net Sales 7,770,000

b. Net Profit Ration or Return on Sales 0.13

Net Profit 1,047,007.50

0.13
Net Sales 7,770,000

c. Return on Assets 19.69

Net Profit + Interest (net of Tax) 1,047,007.50 + 448,717.50

x100
Average Total Asset 7,591,770.21

d. Return on Common Equity 10.94

Net Profit - Preffered DIvidends 1,047,007.50 - 500,000

x100
Average Ordinary Shareholders Equity 5,000,000

e. Return on Total Equity 7.76

Net Profit - Dividends on Redeemable Preffered Share 1,047,007.50 - 500,000

x100
Average Total Equity 7,046,090.83
 x100 19.69

x100 10.94

1,047,007.50 - 500,000
x100 7.76
7,046,090.83
E. Shareholders Ratio
a. earning per share 109.40

Net Profit - Preffered DIvidends 1,047,007.50 - 500,000

109.40
Average Number of Ordinary Shares Outstanding 5,000

b. Earning yields (Prevailing market price per share P1,1 0.10

Eaning per share 109.40

0.10
Market Price per Share 1,100

c. Dividend per share 100

Dividend Paid / Declared 500,000

100
No. Ordinary Share Outstanding 5,000

d. Dividend Yield Ratio (Prevailing market price per shar 9.09

Dividend per share 100

x100 x100 9.09
Market Price per share 1,100

e. Dividend Payout rat 91.41

Dividends per share 100

x100 x100 91.41
Earnings per share 109.40

f. Price earning ratio 1,005.48

Market price per share 1,100

x100 x100 1005.48
earning per share 109.40

g. Book value per share - ordinary 409.22

Total Shareholders Equity - Preffered share capital

7,046,090.83 - 5,000,000
409.22
Average outstanding ordinary share 5,000

h. Payback period 0.05

100% 100%
0.05
Rate or ROI 20.94