2019 2018 Cash $32,300 $46,900 A/R 50,700 58,300 70,500 75,800 Inventory Net Fixed Assets 504,500 461,000 $658,000 $642,000 Accounts Payable ST Notes Payable Long Term Debt Owners Equity $58,900 20,000 134,700 444.400 $61,200 30,000 164,500 386,300 $658,000 $642,000 Note:ST Notes Payable are all due in less than 1 year. 2019 Income Statement $642,100 Sales Cost of Goods Sold 409,800 Depreciation 138,400 EBIT $93,900 Interest Expense 15,600 Taxable income $78,300 Taxes 20,200 Net Income $58,100 3. Assume the firm had 75,000 common shares outstanding. As an investor, you would purchase stock in this company if Earnings per Share )"EPS") was at least $1.00 per share and the firm's Profit Margin ("PM") was at least 8%. Will you purchase the stock? No because the EPS is less than $1.00 per share No because the PM is less than 8% O No because both the EPS and PM are below your minimum investment criteria Yes because the EPS is greater than $1.00 per share Yes because the PM is greater than 8% Yes because both EPS and PM are above your minimum investment criteria