4. As a finance manager calculate the following ratios from your company financial statements (file upload on Moodle) and briefly explain the interpretation of numerical answers? (Answer page 7 & 8 for explanations font size 10) (12 Mares) Sample Products Co. Income Statement For the Five Months Ended May 31, 2017 1. Calculate the following ratios with the help of file upload on Moodle the Coca Cola company financial statements for the year 2017. Briefly malyses the interpretations of the answer a Return on equity b. Gross profit ratio Sales Cost of goods sold Gross profit $100,000 75.000 25,000 Example Company Balance Sheet December 31, 2017 7,000 Operating expenses Selling expenses Advertising expense 2,000 Commissions expense 5,000 Administrative expenses Office supplies expense 3.500 Office equipment expense 2.500 Total operating expenses ASSETS LIABILITIES 6.000 $ 13.000 Operating income 12 000 Current assets Cash Pelly Cash Temporary investments Accounts receivable net Inventory Supplies Prepaid insurance Total current assets 2.100 100 10.000 40.500 31.000 3.800 1,500 89,000 Current Notes payable Accounts payable Wages payable Interest payable Taxes payable Warranty Uneamed revenues Toe ons $ 5.000 35.00 8.500 2.800 6,100 1,100 1.500 61 000 Non-Operating or other Interest revenues Gain on sale of investments Interest expense Loss from lawsuit Total non-operating 5,000 000 (500) (1.500) 6.000 Investments 35.000 Long-term ab Notes payable Bonds payable Total long-term as 20.000 400 000 420.000 Net Income $ 18,000 Property, plant & equipment Land Land improvements Buildings Equipment Les accum depreciation Prop. plant & equip.net 5,500 6.500 180 000 201.000 (56000 337,000 Total Babies 481.000 Intangible assets STOCKHOLDERS' EQUITY Goodwie Trade names Total intangible assets 105.000 200 000 305.000 Common stock Retained earnings Accum other comprehensive income Less Treasury stock Total stockholders equity 110.000 220 000 9.000 50 000) 209.000 Other assets 3.000 Toasts 5770 000 Total liabilities & stockholders' equity S770.000 The notes to the sample balance sheet have been omed