Strong Tie Ltd. Homework Questions 1) Prepare the following financial exhibits for 2006, 2007, and 2008: ? Ratio table with industry averages ? Vertical analysis of income statements and balance sheet ? Analysis of ROE ? Cash flow statements (2007 and 2008 only) All calculations should be done using year-end numbers (not averages) . 2) Prepare at 2 page (minimum) memo for Mr. Johnstone. The memo should be divided into sections describing liquidity, asset management, long-term debt paying ability, profitability, and recommendations. The formatting of the memo is not as critical as is the analysis and discussion.

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