4. Down Inc. operates a large quarry in Central BC. Selected data from Down Inc. for the year ended December 31, 2018 are presented below: (20 marks) Total assets Average total assets Net earnings Net sales Average 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 ended December 31, 2018 2. Comment on the ratios you prepared in part 1 by comparing your ratios to the following averages in the industry: Profit Margin: 5% Return on Equity 7% Sune TOUIS * 116% 7 Q UNIVERSITY WWW.YORKVILLEU.CA 5.) On January 1, 2017, Vancouver Corporation paid $400,000 to purchase 40% of the outstanding voting stock of Montreal Corporation. The equity method is used to account for the investment. The following data relate to this investment. (20 marks) 2017 Dividends received from Montreal Corporation amounted to $20,000. Net income reported by Montreal Corporation was $200,000. Current market value of Montreal Corporation investment on December 31, 2017, was $700,000. 2018 Dividends received from Montreal Corporation amounted to $30,000. Net income reported by Montreal Corporation was $300,000. Current market value of English Court Corporation investment on December 31, 2018, was $860,000. The investment was sold on December 31, 2017 for $830,000 Prepare all journal entries for 2017 and 2018 relating to Vancouver Corporation's investment in Montreal Corporation. Type here to search