1.Use the following information about CDD Corporation to calculate the following ratios for 2019 (assume an effective tax rate of 35%).

2. State, with reasons, whether or not an investor should invest in the company on the terms outlined.

1.	Return on Assets
2.	Gross profit margin
3.	Assets Turnover
4.	Return on Common Shareholders Equity
5.	Accounts Receivable Turnover
6.	Inventory Turnover

CDD Corporation Balance Sheet As of December 2019 2018 31, Assets: $ 712,300 $ 425,000 Cash and cash equivalents 408,000 106,250 Accounts Receivable Inventory 510,000 612,000 Current Assets 1,630,300 1,143,250 Equipment 714,000 654,500 (238,000) (119,000) Less: Accumulated depreciation Land 425,000 170,000 Total assets $2,531,300 $1,848,750 Total assets $2,531,300 $1,848,750 Liabilities Accounts Payable $ 297,500 $ 382,500 93,500 136,000 Accrued Salaries Payable 37,400 17,000 Rent Expense Payable 117,300 68,000 Income Tax Payable 545,700 603,500 Current Liabilities 850,000 510,000 Long-term note payable Total Liabilities 1,395,700 1,113,500 Stockholders' Equity: Common stock 510,000 850,000 510,000 Long-term note payable Total Liabilities 1,395,700 1,113,500 Stockholders' Equity: Common stock 714,000 510,000 Retained earnings 421,600 225,250 $2,531,300 $1,848,750 Total liabilities and stockholders' equity CDD Corporation Income Statement For the year ended December 31, 2019 CDD Corporation Income Statement For the year ended December 31, 2019 Revenues $2,499,000 Cost of goods sold (1,428,000) Gross Profit 1,071,000 Operating Expenses Depreciation expense (112,000) Salary expense (233,600) Insurance Expense (40,000) Rent Expense (160,000) Interest Expense (67,200) Total Operating _(612,800) Gross Profit 1,071,000 Operating Expenses (112,000) Depreciation expense Salary expense (233,600) Insurance Expense (40,000) Rent Expense (160,000) Interest Expense (67,200) __0612,800). Total Operating Expenses 458,200 Income from Operations _(160,370). Income Tax Expense Net income $ 297,830