4. Down Inc. operates a large quarry in Central BC. Selected data from Dow December 31, 2018 are presented below: (20 marks) Total assets Average total assets Net earning Net sales Averare common shareholders' equity Net cash provided by operating activities $1,600,000 1,500,000 123,200 1,200,000 1,000,000 280,000 Required: 1. Calculate the profit margin and return on equity for Down's for the year 2. Comment on the ratios you prepared in part 1 by comparing your ratios the industry: Profit Margin: 5% Return on Equity 7%. 1. Budget Ltd. Completed the following transactions: October 1, 2017: Provided consulting services to Sealrom Corporation on account, $10,000, terms 30 days. November 1, 2017: Accepted a one-year, 6% note from Sealrom Corporation to settle its account. December 31, 2017: Accrued interest on the note from Budget Corporation (round to the nearest dollar). December 31, 2017: Budget received all the interest from Sealrom Corporation. Budget accept a new one-year, 12% note from Sealrom to replace the previous note. (20 marks) Required 1. Record entries for the above transactions. 2. Do you think that leverage can have an impact on financial ratios? Which category of ratios will be most impacted if Sealrom Ltd. keeps on borrowing? What do you advise to the company