Balance Sheet

20x4 P 20x3 B % of Increase/Decrease

Assets
Cash 72,000.00 0.05 65,000.00 0.11
Account Receivable 439,000.00 0.31 328,000.00 0.34
Inventories 894,000.00 0.64 813,000.00 0.10
Total Current Assets 1,405,000.00 1.00 1,206,000.00 0.17
Land and Building 238,000.00 271,000.00 (0.12)
Machinery 132,000.00 133,000.00 (0.01)
Other fixed asset 61,000.00 57,000.00 0.07
Total Assets 1,836,000.00 1,667,000.00 0.10

Liabilities and Owner's Equity

Accounts Payable and Notes Payable 432,000.00 409,500.00 0.05
Accrued Liabilities 170,000.00 162,000.00 0.05
Total Current Liabilities 602,000.00 571,500.00 0.05
Long-term debt 404,290.00 258,898.00 0.56
Common stock 575,000.00 575,000.00 -
Retained Earnings 254,710.00 261,602.00 (0.03)
Total Liabilities and Owner's Equity 1,836,000.00 1,667,000.00 0.10

REQUIREMENT A
Current Ratios 2.33 2.11 0.11
Quick Assets 511,000.00 393,000.00 0.30
Quick Ratio 0.85 0.69 0.23

Given the average industry for current ratio of atmost 2.7, it can be said that Mango Company is highly liquid considering that
its computed average ratio have showed 2.33. This result only means that for every 1 pero of its current liabilities, the
company has an available asset of approximately 2.33. However, if we are to consider the quick ratio of the company, this
might oppose the prior statement concluded as the computation showed that the company only has .89 available cash as
inventories of the company for 20x4 took a larger percentage of atleast 64% of the total current assets and as evidenced as
well by the percentage of increase and decrease, it suggested that the company had invested more this year on inventories as
Given the average industry for current ratio of atmost 2.7, it can be said that Mango Company is highly liquid considering that
its computed average ratio have showed 2.33. This result only means that for every 1 pero of its current liabilities, the
company has an available asset of approximately 2.33. However, if we are to consider the quick ratio of the company, this
might oppose the prior statement concluded as the computation showed that the company only has .89 available cash as
inventories of the company for 20x4 took a larger percentage of atleast 64% of the total current assets and as evidenced as
well by the percentage of increase and decrease, it suggested that the company had invested more this year on inventories as
it increased by 10%. For the 2 years presented, Mango Company's, it canbe said that they are increasing their liquidity, since
from 20x3's 2.11 of current ratio, it rose by .22 in 20x4. the same is true for its quick ratio as it had increased by 23%.

REQUIREMENT B
Recievable Turnover 11.06 11.08 (0.002)
Average Collection Period 33.01 32.94 0.002
Inventory Turnover 4.31 3.67
Average Conversion Period 84.65 99.58

From the results of the above computation, it can be deduced that the company's credit policy might have been relaxed for the
year 20x4 as both of its receivable turnover and average collection period yielded unfavorable results though it is of a little
difference. Its receivable turnover have slowed down which could be attributed to inefficient and ineffective collection policies
or the person accountable for it might have lacked effort in collecting so. As for the Mango Company's Inventory turnover, its
computed 4.31 is relatively low in comparison to the the average industry's 7 times annually. Simultaneously, the low turnover
inventory of the company have showed how many days it takes them to sell its inventory which is atmost 85 days which falls
way behind from the average industry by 53 days. This only means that the marketing efforts of the company might be lacking
or it could also be pointed out to the company's excessive procurement of inventories and failure to execute well of its
marketing strategies laid out. On the contrary, if the company is to be assessed on an interperiod basis, it can be seen thay
they they are trying to improve their inventory management but somehow, loses on the other end as their recievables from its
sales are dragging them down.

REQUIREMENT C
Debt Ratio 0.55 0.50 0.100
Equity Ratio 0.45 0.50 (0.100)
Debt to Equity Ratio 1.21 0.99 0.222

From the results of the debt to equity ratio of the company for the year 20x4, it can be said that the same company is highly
reliant to liabilities and associated with this is the risk the company may face, add to it the 22.2% increase of its liabilities over
its equity. Furthermore, from the computed debt ratio of the company at approximately 55%, it also entails risk as well for
companies in cases of bankcruptcy as creditors are first to be satisfied.Also, the result indicates that for every 1 pero of the
company's assets, .55 of it is supplied by the creditors while .45 is from the shareholders of the company. In comparing the
debt ratio of the company from that of the avarage industry's 50%, it can be deduced that the Mango company is highly
financed by debts. On an interperiod basis, above conclusions still holds true as evidenced by a 100% increase in the debt ratio
and a 100% decrease in the equity ratio. These changes only indicates the the company have opted to be financed by debts,
thus more expenses are to be paid out by the company for principal repayments and interests .

REQUIREMENT D
Profit Margin 0.43 2.64
Total Asset Turnover 2.42 2.18
Return on Asset 1.05 5.76
Fixed Asset Turnover 9.51 7.89

Profit Margin of Mango Company which is approximately at .43% is way far from the average industry's 3.5%. Such low margin
may be associated to the company's cost of good sold which ate up almost 87% of the sales and this might also be indicative
that there is a problem with the company's management particularly the procurement department: there is an excessive levels
of inventory and if it is to be based from their inventory turnover it also fell behind the average which may be attributable to
low marketing efforts made. As for the total asset turnover, the company still falls behind the average, indicates that the
company's sales are sluggish. Moreover, the retun on asset of the company, given that both of its profit margin and total asset
turnover is low, yielded as well to a non-par 1.05% as opposed to the industry average of 9.1%. this same result might indicate
that the company have failed to assess and address the issues it might have on its plant capacity as evidenced by the 6.51%
decline in its total property, plant and equipment and the increase in its cost of goods sold by 23%, clearly showing signs of
production mismatch. Lastly, for the fixed asset turnover of the company, it can be seen that in 20x4 the company have
slightly improved which may be attributed to the sales increase at approximately 17%. On an interperiod basis, profit margin
have showed large decline by atmost 84% of which can be due to the cost of goods sold. as to the total asset turnover, it
showed an increase which approximates 11% which may be attributable to the company's increasing current assets. as to the
fixed asset turnover, it rose by almost 21% which can be attributable to the company's sales increase.
turnover is low, yielded as well to a non-par 1.05% as opposed to the industry average of 9.1%. this same result might indicate
that the company have failed to assess and address the issues it might have on its plant capacity as evidenced by the 6.51%
decline in its total property, plant and equipment and the increase in its cost of goods sold by 23%, clearly showing signs of
production mismatch. Lastly, for the fixed asset turnover of the company, it can be seen that in 20x4 the company have
slightly improved which may be attributed to the sales increase at approximately 17%. On an interperiod basis, profit margin
have showed large decline by atmost 84% of which can be due to the cost of goods sold. as to the total asset turnover, it
showed an increase which approximates 11% which may be attributable to the company's increasing current assets. as to the
fixed asset turnover, it rose by almost 21% which can be attributable to the company's sales increase.

REQUIREMENT E
Price earnings ratio 15.43 5.65

From the above figures, it indicates that the company's expected price for each share on the basis of its earnings rose to atleat
1.73%. in addition, such increase also implies the increase on the company's market value for every share. Given that its price
per earnings ratio had increased this also meant drawing of more investors who are willing to pay for it as this signals a positive
future for the company. With this increase, investors of Mango Company are anticipating for groeth and higher performance.

REQUIREMENT F
DuPont ROE 0.022 0.11

On the basis of the industry's average at approximately 18.2% for the year 20x4 and the company's low record at 2.2% goes to
show that Mango Company has poor effeciency and effectivity in terms of utilizing its assets in creating profits. As what have
been discussed on the other requirement, it is said that the company is having a mismatch in its production capacity as it can
be deduced from the figures of its data that it had high levels of inventroy for thecurrent year but its assets if companred from
the previous year have declined. On an interperiod basis, the company had a better performance at 11% during its 20x4.

REQUIREMENT G

If Mango Company have initiated to cut down the levels of its inventory, reviews and assessment made off of the company
might make the tables tune for almost every of the ratios computed were pinpointed to it. It might have been a different story
 Income Statement
20x4 P 20x3 B % of Increase/Decrease
Sales 4,240,000.00 1.000 3,635,000.00 1.000 0.17
Cost of goods sold 3,680,000.00 0.868 2,980,000.00 0.820 0.23
Gross Operating Profit 560,000.00 0.132 655,000.00 0.180 (0.15)
General administrative and selling expense 236,320.00 0.056 213,550.00 0.059 0.11
Depreciation 159,000.00 0.038 154,500.00 0.043 0.03
Miscellaneous 134,000.00 0.032 127,000.00 0.035 0.06
Earnings before taxes EBT 30,680.00 0.007 159,950.00 0.044 (0.81)
Taxes 12,272.00 0.003 63,980.00 0.018 (0.81)
Net Income 18,408.00 0.004 95,970.00 0.026 (0.81)

431,000.00
461,000.00

Per Share Data

20x4 P 20x3 B % of Increase/Decrease
EPS 0.80 4.17
Cash Dividends 1.10 0.95
Market Price -Average 12.34 23.57
P/E Ratio 15.43 5.65
Number of shares outstanding 23,000 23,000

829,710.00
836,602.00