Cases in Financial Management

"Exhibit 1 "Income Statements , 1983-1985 (000 's of dollars "1983 to 1985 "total "Average "1983 "1984 "1985 "1986 "1987 "1988 "ratios "Net Sales "13198 "21624 "30848 "43187 .2 "60462 .08 "84646 .912 "65670 "1 "Cost of Product Sold "6825 "9682 "13989 "19866 .112 "27812 .5568 "38937 .57952 "30496 "0 .3875 "Gross Profit "6373 "11942 "16859 "23321 .088 "32384 "45338 .7 "35174 "0 .6125 "General , Selling , and admin expenses "6299 "11374 "14478 "21143 "29601 "41441 "32151 "0 .1672 "Research and development "1168 "2839 "4182 "5385 "4038 "5653 "8189 "0 .4982 "0 "Operating earnings "-1094 "-2271 "-1801 "-3397 "-4756 "-6658 "-5166 "-0

.05299 "Interest expense "501 "611 "634 "528 .8 "739 .7 "1035 "1746 "0 .88899 "Sales of patents technology "0 "1370 "627 "0 "0 "0 "1997 "0 .69606 "Other Income "103 "336 "321 "269 .5 "374 .6 "524 .4 "760 "0 .81422 "Earnings before tax "-1492 "-1176 "-1487 "-1337 "-1872 "-2622 "-4155 "-0 .4317 "Income tax "202 "0 "0 "16 .47 "12 .72 "17 .8 "202 "0 .055885 "Net Earnings "-1290 "-1176 "-1487 "-2599 "-3639 "-5095 "-3953 "-0 .37582 "Exhibit 2 "Balance Sheets at December 31 , 1983085 (000 's of dollars "1983 "1984 "1985 "1986 "1987 "1988 "Cash "1243 "-80 "-652 "-652 "500 "200 "A /R "2549 "3359 "5996 "5996 "2996 "2000 "Inventories "3305 "6782 "9762 "9617 .35 "2371 "1571 .53 "Other "520 "2249 "2605 "150 "2604 .84 "2605 "Current assets "7617 "12310 "17711 "15111 .35 "8471 .84 "6376 .53 "Net fixed assets "906 "1494 "1802 "1802 "4802 "1802 "capital leases "321 "374 "212 "212 "212 "212 "Invenstment "0 "1943 "1049 "1049 "1049 "1049 "Other "301 "322 "303 "303 "303 "303 "Total "9145 "16443 "21077 "18477 "14837 "9742 "Notes payable to Biological Labs "0 "2260 "1735 "1000 "1060 "1006 "Note Payable to bank "1307 "5628 "4900 "6949 "4949 "5629 "Note payable to vendor "47 "0 "0 "0 "0 "0 "Accounts payable "725 "1926 "1853 "725 "1926 "1853 "Accrued expenses "740 "1086 "1331 "740 "1086 "1331 "Current portion-long-term debt capital leases "124 "119 "90 "124 "119 "90 "Other "22 "37 "33 "22 "37 "33 "Current liabilities "2965 "11056 "9942 "9560 "9177 "9942 "Deferred income "0 "627 "0 "0 "627 "0 "Long-term debt "254 "0 "0 "254 "0 "0 "Capital lease obligation "267 "277 "139 "267 "277 "139 "Total liabilities "3486 "11960 "10081 "10081 "10081 "10081 "Net worth "5659 "4483 "10996 "8396 "4756 "-338 .1 "Total Liabilities net worth "9145 "16443 "21077 "18477 "14837 "9742 "Financial highlight and ratios "Sales "13198 "21624 "30848 "43187 .2 "60462 .08 "84646 .912 "Net Income "-1290 "-1176 "-1487 "-2599 "-3639 "-5095 "Current Assets "7617 "12310 "17711 "15111 .35 "8471 .84 "6376 .53 "Total Assets "9145 "16443 "21077 "18477 "14837 "9742 "Current Liabilities "2965 "11056 "9942 "9560 "9177 "9942 "Total Liabilities "3486 "11960 "10081 "10081 "10081 "10081 "Total Net Worth "5659 "4483 "10996 "8396 "4756 "-338 .1 "Net Profit margin "-0 .36566 "-0 .80466 "-0 .03734 "-0 .37582 "-0 .37582 "-0 .37582 "Return on Assets "-0 .1039 "-0 .77267 "-0 .57029 "-0 .9934 "-0 .3063 "-0 .2521 "Return...