5. Using the information in the Balance Sheet and Profit and Loss Statement below, calculate the following ratios and answer the questions (8 points in total) EXHIBIT 9.14 Parts Co: Consolidated Financial Statements S million Income statement Balance sheet Prior year Current year Prior year Current year Revenues 782.6 900.0 Working cash 15.0 12.3 Cost of sales (508.7) (612.0) Accounts receivable 85.8 111.0 Selling Costs (156.5) (171.0) Inventory 69.7 75.5 Depreciation (27.0) (31.3) Current assets 170.5 198.8 Operating profit 90.4 85.7 Property and equipment 626.1 720.0 Interest (5.0) (7.5) Total assets 796.6 918.8 Eamings before taxes 85.4 78.2 Taxes (31.1) (30.8) Liabilities and equity Net Income 54.3 47.4 Accounts payable 33.7 44.1 Short-term debt 19.4 Current liabilities 33.7 63.5 Long-term debt 170.0 215.0 Shareholders' equity 592.9 640.3 Liabilities and equity 796.6 918.8 Return on Owner's Equity (ROE) ratio in prior year = Return on Owner's Equity (ROE) ratio in current year - Profit as Percentage of Sales ratio in prior year = Profit as Percentage of Sales ratio in current year = 3) Based on the above ratio analysis, what conclusions/observations can you make regarding the financial situation of this company. (If any)