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Financial Statement - Bayside Inc.

I have what I call a complex problem where I don't know where to begin.

The problem is in the attachment. Any help would be greatly appreciated!

Bayside Inc.
2007 Income Statement
($ in thousands)

Net sales $5,680
Less: Cost of goods sold 4,060
Less: Depreciation 420
Earnings before interest and taxes 1,200
Less: Interest paid 30
Taxable Income $1,170
Less: Taxes 410
Net income $ 760

Bayside, Inc.
2006 and 2007 Balance Sheets
($ in thousands)

2006 2007 2006 2007
Cash $ 70 $ 180 Accounts payable $1,350 $1,170
Accounts rec. 980 840 Long-term debt 720 500
Inventory 1,560 1,990 Common stock 3,200 3,500
Total $2,610 $3,010 Retained earnings 940 1,200
Net fixed assets 3,600 3,360
Total assets $6,210 $6,370 Total liabilities & equity $6,210 $6,370

Trying to find the following:

1. Working Capital to total assets ratio for 2007
2. Dollars of sales being generated from every dollar of fixed assets
3. Debt-equity ratio for 2007
4. Return on equity for 2007
5. Net change in cash for 2007

Attachments

Solution Preview

Bayside Inc.
2007 Income Statement
($ in thousands)

Net sales $5,680
Less: Cost of goods sold 4,060
Less: Depreciation 420
Earnings before interest and taxes 1,200
Less: Interest paid 30
Taxable Income $1,170
Less: Taxes 410
Net income $ 760

Bayside, Inc.
2006 and 2007 Balance Sheets
($ in thousands)

2006 2007 2006 2007
Cash $ 70 $ 180 Accounts payable $1,350 ...

Solution Summary

The solution explains the calculation of Working Capital to total assets ratio, dollars of sales being generated from every dollar of fixed assets, debt-equity ratio, return on equity and net change in cash

$2.19