Answer Question 25 and 26 which you will find on Page 46 of your textbook Fundamentals of Corporate Finance. (10th edition)
Use the following information for problem 25 and 26 and assume the tax rate is 34%.
2010 2011
Sales $11,573 $12,936
Depreciation 1,661 1,736
Cost of goods sold 3,979 4,707
Other expenses 946 824
Interest 776 926
Cash 6,067 6,466
Accounts receivable 8,034 9,427
Short-term notes payable 1,171 1,147
Long-term debt 20,320 24,696
Net fixed assets 50,888 54,273
Account payable 4,384 4,644
Inventory 14,283 15,288
Dividends 1,411 1,618
For Q25, draw up an income statement and balance sheet. Be sure to follow the format as outlined in the text and on the lecture. For Q26, cite the formula for operating cash flow and then plug-in the correct numbers. For Q26, you need to submit only Operating Cash Flow, not all three cash flow measures. After you have completed your income statement and balance sheet, compute the following financial ratios for both fiscal years:  1) current ratio; 2)quick ratio; 3)accounts receivable turnover; 4)inventory turnover; 5)debt to equity; 6)profit margin; 7)return on equity. For all ratios, cite the formula and then plug-in numbers. Show all your work, not just the final answer. Remember to compute ratios for both years! Does this company appear to be a healthy company? Comment, and include financial numbers and ratios from your work, above, to support your answer which should be appx 2-3 paragraphs, single-spaced.