Mountain State Sporting Goods (Fraud Investigation Phases I-III.)

Appendix A-6 Mountain State Sporting Goods Select Financial Ratios Source: U.S. Income Tax Return for S Corporation (Form 1120S)

2003 2004 2005 2006 2007 2008 Gross Margin 17.67% 17.69% 18.18% 19.79% 17.65% 17.21% Net Margin 5.45% 4.06% 1.85% 3.27% 1.49% 1.10% Return on Assets 35.39% 26.33% 12.96% 21.14% 9.11% 6.70% Debt to Assets 38.21% 29.52% 18.45% 23.08% 28.86% 27.37% Current Ratio 16.77 15.72 9.71 7.25 5.53 5.14 Inventory Turnover 7.92 7.34 7.29 7.03 7.06 7.20 Interest Coverage 13.32 14.07 14.59 40.51 N/a N/a Debt to Equity 61.83% 41.87% 22.62% 30.00% 40.56% 37.68%