1. The Walton Corporation's 2019 financial statements follow, along with some industry average ratios. Walton Corporation: Balance Sheet as of December 31, 2020 Assets Cash Accounts receivable Inventories Total current assets Fixed assets Total assets $ 72,000 4,39,000 894,000 $ 1,405,000 4,31,000 $1,836,000 Liabilities and Equity Accounts and notes payable Accruals Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity $ 432,000 170,000 $ 602,000 404,290 575,000 254,710 $1,836,000 Walton Corporation: Income Statement for 2020 Sales Cost of goods sold Selling, general, and administrative expenses Depreciation Earnings before taxes (EBT) Taxes (40%) Net income $4,290,000 3,580,000 370,320 159,000 $ 180,680 72,272 $ 108,408 $ 4.71 $0.95 Per Share Data EPS Cash dividends per share P/E ratio Market price (average) Number of shares outstanding 5 $ 23.57 23,000 Industry Financial Ratios (2020) Quick ratio Current ratio Inventory turnover Total assets turnover Return on assets Return on equity Debt ratio Gross Profit margin Net Profit margin P/E ratio 1.0 2.7 7.0 2.6 9.1% 18.2% 50.0% 20% 3.5% 6.0 Questions (10): Calculate Walton's 2020 ratios (Quick Ratio, Inventory turnover, ROE, Debt Ratio, Gross Profit Margin): interpret them and compare them with the industry average data, (Just write whether the ratio is better/worse than the industry average) 2. Given the financial data for Federer, Inc.: Depreciation EBIT Interest Expenses Taxes Cash Accounts Receivable Inventory Net fixed assets Accounts payable Notes payable Accruals For the year ended December 31, 2018 2019 $ 6,000 30,000 3,000 8,000 $21,000 25,000 39,000 45,000 29,000 30,000 23,000 26,000 25,000 30,000 50,000 40,000 1,000 2,000 Questions (5): Calculate Operating Cash Flow (OCF) and Free Cash Flow (FCF) for the year of 2019