Dr Cr P/Q Q

Q1 beg 15 beg 15 2000

1 25 Purchase 1 25 3000
2 30 2 30 3500
3 20 COGS 65 3 20 4000
end 25

Total INV End Used

90 25 65

P/Q Q P
5 3500 17500
20 4000 80000
Sum 97500 ($ of inventory at end of year with FIFO)

Q2 Total INV End Used

15 2000 30000
10 3000 30000
60000 ($ of inventory at end of year with LIFO)

Q3 COGS using LIFO

Q P LIFO COGS Sum

purchase 10000 4
purchase 20000 5 8000 40000
purchase 30000 6 30000 180000
sell 38000 11 220000

Q4 Raw materials WIP FG

9000 70000 30000
65000 63000 63000 138000 120000
11000 10000
75000 138000
80000 48000

Q5 ROA 42.3% 45.5%

Q6 ROE 71.8% 97.2%
Q7 Dupont d,b,c Average
2009 2010 2011 2009-20102010-2011
NI 105078 131260 106044 118169 118652
Sales 551961 636732 627434 594346.5 632083
TA 385805 235178 231333 310491.5 233255.5
SE 189820 176004 42293 182912 109148.5

2010 2011
ROE 71.8% 97.2% 35% Inrcease
Profit Margin 22.1% 16.8% -24% Decrease
Asset Turnover 1.9 2.7 42% Increase
 Financial Leverage 1.7 2.1 26% Increase

a) 0.0%
b) 100.0%
c) 100.0%
d) 100.0%
e) 0.0%

Q8 Ratio

Old GPM 20%

CA LA CL LL
Sell 10000 up 10000 up
Cash goes up by 10000 down -5000 down
Rev goes up 10000 5000

COGS 5000
Expense goes up 5000
inv goes down 5000

current ratio CA goes up CA goes up a yes

CL same b no
c no
GPM GP 5000 d yes
Rev 10000 e no
old 20.0%
new 50%
GPM increased
SE
10000
-5000
5000