R7C7 Corporation

Balance Sheet (in thousands)

December 31, 2017 December 31, 2016
ASSETS
Cash P 2,540.00 P
Marketable Securities 1,800.00
Accounts Receivable 18,320.00
Inventories 27,530.00
Total Current Assets P 50,190.00 P
Plant, Property and Equipment P 43,100.00 P 39,500.00
Less: Accumulated Depreciation 11,400.00 9,500.00
Net plant and equipment 31,700.00
Total Assets P 81,890.00 P

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable P 9,721.00 P
Notes Payable (10%) 8,500.00
Accrued taxes payable 3,200.00
Other current liabilities 2,102.00
Curent portion of Long term debt 2,000.00
P 25,523.00 P
Long Term Debt (9% bonds) * 22,000.00
Total Liabilities P 47,523.00 P
Common Stock P 13,000.00 P 13,000.00
In excess of Par Value 10,000.00 10,000.00
Retained Earnings 11,367.00 9,151.00
Total Stockholders' Equity P 34,367.00 P
Total Liabilities and Stockholders' Equity P 81,890.00 P

* P2,000(000).00 annual payment to a sinking fund

December 31, 2016

2,081.00
1,625.00
16,850.00
26,470.00
47,026.00

30,000.00
77,026.00

8,340.00
5,635.00
3,150.00
1,750.00
2,000.00
20,875.00
24,000.00
44,875.00

32,151.00
77,026.00
R7C7 Corporation
Income Statement (in thousands)
December 31, 2017

Net sales P 112,760.00

Cost of Sales 85,300.00
Gross Profit P 27,460.00
Operating Expenses
Selling
General and Administrative * P 6,540.00
9,400.00
Total Operating Expenses 15,940.00
Earnings Before Interest and Income Taxes P 11,520.00
Interest charges
Interest on bank loans P 850.00
Interest on mortgage 2,310.00
Total Interest charges 3,160.00
Earnings before taxes P 8,360.00
Income taxes 2,508.00
Earnings after Income Taxes P 5,852.00

OTHER INFORMATION
Dividends paid P 2,800.00
Earnings retained P 2,216.00
Shares outstanding (000) 1,300.00
Market price per share P 25.00
Book value per share P 27.00
Earning per share P 3.86
Dividends per share P 2.15

* Inclusive of P150(000) annula lease payments

1 Current Ratio = Current Assets 50,190
Current Liabilities 25,523

2 Quick Ratio = Current Assets-Inventories 50,190-27,

Current Liabilities 25523

3 Average = Accounts Receivable

Collection Annual Credit Sales/365
Period

4 Inventory = Cost of Sales

Turnover Average Inventory

5 Fixed-Asset = Sales
Turnover ratio Net Fixed Assets

6 Total Asset = Sales

Turnover ratio Total Fixed Assets

7 Debt Ratio = Total Debt 47,523

Total Assets 81,890

8 Debt-to-Equity = Total Debt 47,523

Ratio Total Equity 34,367

9 Times Interest = Earnings before interest and taxes

Earned Ratio Interest charges

10 Fixed-Charge = EBIT+ Lease payments

Coverage Ratio Interest+Lease payments+prefered dividends+
Before tax sinking fund

11 Gross Profit = Sales- Cost of Sales

Ratio Sales

12 Net Profit = Earnings After Tax

Ratio Sales

13 Return on = Earnings After Tax

Investment Ratio Total Assets

14 Return on Equity = Earnings After Tax

Ratio Stockholders' Equity

15 Price-to-Earnings = Market Share per share

Ratio Current earnings per share
16 Market Price-to- = Market Share per share
Boook Value Ratio Book Value per share

17 Payout Ratio = Dividends per share

Earnings per share

18 Dividend Yield = Expected dividend per share

Stock price
 1.97

22,660 0.89
25523

0.58
Industry Average

1 Current Ratio 2.40 times

2 Quick Ratio 0.92 times
3 Average Collection Period 47 days
4 Inventory Turnover 3.9 times
5 Fixed- Assets turnover 4.6 times
6 Total Asset turnover 1.82 times
7 Debt Ratio 47%
8 Debt to Equity Ratio 88.70%
9 Times interest earned 6.7 times
10 Fixed charge ratio 4.5 times
11 Gross Profit margin 25.60%
12 Net Profit Margin 5.10%
13 Return on investment 9.28%
14 Return on stockholders' equity 17.54%
15 Price to earnings ratio 8.0 times
16 Market to book ratio 1.13
17 Payout ratio 28%
18 Dividend Yield 4.20%