4. Below are the Brant Freezer's 2019 balance sheet and 2019 income statement. Please use this information to answer the following questions Balance Sheet 2019 Asset Cash Account Receivable Inventory Total current asset Net fixed asset Total assets 706034 355450 1590435 2651919 803056 3454975 Liabilities Current liabilities Long-term debt Total liabilities Shareholders' Equity Total Liabilities and Equity 1678589 398060 2076649 1378326 3454975 4003450 937000 3066450 Income Statement 2019 Sales Cost of goods sold Gross Margin Transportation cost Warehousing cost Inventory carrying cost Other operating Total operating cost Earnings Before Interest and Taxes Interest Taxes Net income 657322 735982 567987 345876 2307167 759283 110000 69000 580283 4.2 Because you, as a Logistics manager, believe moving to a greater on-line presence will improve the customer experience, you and the VP of Logistics meet with the VP of Marketing to try to determine how Internet sales will affect customer satisfaction and buying behavior. The VP of Marketing believes that sales will go up by 5.5%. As you discuss what this really means. you note the following: Transportation costs are likely to increase by 3.5% Warehousing cost will increase by 2.5% Inventory will go up by 3.5%. Others will remain unchanged. Please complete the following strategic profit model and discuss whether or not Brant Freezer should have a greater on-line presence (Please indicate your calculation processes). Brant Freezer - Strategic Profit Model Sales- Gross Margin- COGS = Net Profit Net Profit Margin- Sales Total Expenses - ROA= Sales Inventory Current Assets = Asset Turnover = Accounts Receivable Total Assets = Fixed Assets = Other Current Assets