Berry’s Bug Blasters

Liquidity Ratios 2008

Current ratio = Current assets/Current liabilities = 1,836,770.12/306,805.71 = 5.97 (4.09 2007)

Acid-test ratio = (Cash + Accounts receivable + Short-term investments)/Current liabilities = (818,440.68 + 812,395.13 + 0)/306,805.71 = 5.32 (3.01 2007)

Receivables turnover = Net credit sales/Average net receivables = can’t be calculated since company doesn’t sell goods (net sales not provided in financial statements)

Inventory turnover = Cost of goods sold/average inventory = can’t be calculated since company doesn’t sell goods.

Profitability Ratios 2008

Asset turnover = Net sales/Average assets = can’t be calculated since company doesn’t sell good (net sales not provided in financial statements)

Profit margin = Net income/Net sales = can’t be calculated since company doesn’t sell goods (net sales not provided in financial statements)

Return on assets = Net income/Average assets = 493,139.75/[(1,932,041.17 + 1,498,882)/2] = 28.7% (75.3% 2007)

Return on common stockholders’ equity = Net income/Average common stockholders’ equity = 493,139.75/[(1,625,235.46 + 1,132,095.71)/2] = 35.8% (102.9% 2007)

Solvency Ratios 2008

Debt to total assets = Total debt/Total assets = 306,805.71/1,932,041.17 = 15.9% (24.5% 2007)

Times interest earned = Income before income taxes and interest expense/Interest expense = can’t be calculated since company hasn’t had income expense the last 2 years

|Berry’s Bug Blasters |
|Condensed balance sheet |
|December 31