1) Prepare an income statement from the following information. Sales: $600,000 Cost of Goods Sold: $300,000 Administrative expenses: $50,000 Depreciation expenses: $10,000 Interest expense: $15,000 Tax rate: 20% 2) Prepare a balance sheet from the following information Cash $110,000 Accounts receivable: $50,000 Accounts payable: $40,000 Notes payable (short term $120,000 Inventories: $70,000 Gross fixed assets: $175,000 Other assets: $15,000 Retained earnings: $15,000 Accumulated depreciation: $20,000 Long term banknote: $105,000 Other long-term debt: $20,000 Common stock $100,000 3) Prepare a statement of cash flows using the following information. Increase in accounts receivable: 5600 Increase in inventories: $160 Increase in long term debt: $160 Beginning cash: $6,000 Increase in accounts payable: $120 Increase in other current assets: $300 Dividends: $80 Increase in common stock: $20 Increase in gross fixed assets: $100 Depreciation expense: 3,000 Net income: $1,000 4 When will afirm's ROE and ROE be equal to one each other? 5) What are the limitations of financial ratios