1. Orange Corporation provided the following Statements for 2019-20 Balance Sheet 2020 2019 Assets $ $ Cash 40,000 70.000 Accounts Receivable 320,000 350,000 Inventory 460,000 320.000 Total Current Asset 820,000 740,000 Gross Fixed Assets 560,000 520,000 Accumulated Depreciation 180,000 150,000 Net Fixed Asset 380,000 370,000 Total Asset 1,200,000 1,110,000 Liabilities & Stockholders' Equity Current Liabilities Accounts Payable 390,000 320,000 Notes Payable 110,000 90,000 Accrued Expense 20,000 20,000 Total Current Liabilities 520,000 430,000 Debenture 320,000 350,000 Total Liabilities 840,000 780,000 Stockholders' Equity Common Stock at par 100,000 100,000 Additional Paid in Capital 150,000 150,000 Retained Earnings 110,000 80,000 Total Liabilities & Stockholders' Equity 1,200,000 1,110,000 Income Statement Sales Cogs Gross Profit Operating Expenses Operating Income (EBIT) Interest Earnings before Tax (EBT) Tax (30%) Earnings after Tax (Net Income) Dividend for Preferred Stockholders Earnings for Common Stockholders Dividend for Common Stockholders Retained Earnings 2017 $ 2,200,000 1,420,000 780,000 600,000 180,000 29,000 151,000 45,000 106,000 6,000 100,000 25,000 75,000 Required B) Toom Prepare a Cash Flow Statement for the year 2020. (10) Calculate Free Cash Flow for 2020. (5) Calculate the following Ratios for the year 2020 with explanation - (18) 1 Operating Profit Margin, Debt Ratio, Total Asset Turnover Ratio, Inventory Days, Profit Margin, Receivable Days, and Cash Ratio, ROA & EQUITY multiplier. (One year = 365 days) D) If EPS is $2 for Orange Inc. then how many common stocks do they have outstanding? What is the market value per share for Orange, if P/E ratio is 5? (3) E) What is P/E of Tesla at this moment? Explain whether it's high or low? (hint: yahoo finance or WSJ quotes to check Tesla Stock price and Net profit). (4) F) A company has a profit margin of 8.8%, total asset turnover of 3.7, assets of $88,000 and liabilities of $25,000. How would the ROE change if profit margin increases to 9.5%, sales decrease by 5% and all balance sheet items stay the same? (4)