6-1. A. Use the following 2000-2002 financial statements for Riverside to compute the listed profitability, liquidity, and solvency metrics. Note two alteratives for completing part A. of this problem 1. You can compute the financial metrics with a hand-held calculator and record your responses in the table presented after the balance sheets 2. You can access the Excel file uploaded by your instructor containing the same Information below and program Excel to calculate the ratios. Income Statements (in thousands, except EPS) For Years Ended December 31 2022 2021 Sales revenues $1,300 $1,200 Cost of goods soki 655 180 Gross profit 685 540 Depreciation expertise 2001 120 Amortization expense 5 5 Other operating expenses 308 345 Operating income 82 70 Interest (mancing expense 32 10 Pretax income 50 60 Income tax expense (40%) 20 24 Net income $ 30 8 36 2020 $1.000 600 400 100) 5 26 40 10 30 12 $ 18 Introduction to Accounting and Finance 161 12/31/20 8:20 90 170 290 500 (100) 400 LO Balance Sheets (in thousands, except share par value) December 31 12/31/22 12/31/21 Assets Cash 3185 8 90 Accounts receivable net 150 80 Inventory 2! 228 Total current assets 513 398 Property, Plant and Equipment Equipment at cust) 800 600 Less: accumulated depreciation (420 Equipment, net of accumulated depreciation 380 380 Intangible Assets: Customer database (at oost) 35 25 Less: accumulated amortization Customer database, net of accumulated amortization 10 15 Total Assets $903 $793 Liabilities Accounts payable $44 $145 Accrued liabilities 20 Total current liabilities 50 165 Long-term notes payable 3071 100 Total Liabilities 310 265 Shareholders' Equity Common stock, 81 par 50 50 Additional paid-in-capital or common stock 420 430 Total contributed capital 180 480 Retained eaming 73 48 Total Shareholders' Equity 28 Total Liabilities and Shareholders' Equity 3903 $793 25 06 22 $710 31841 192 100 292 40 400 18 418 3710 162 Chapter 6 Financial Statement Analysis 2022 2021 2020 Financial Measures Return on equity Return on assets Operating profit margin Net profit margin Asset turnover Financial leverage ratio Working capital Working capital (current) ratio Inventory turnover Days in inventory Accounts receivable turnover Days in accounts receivable Accounts payable turnover Days in accounts payable Net cash conversion cycle Debt-to-capital ratio Debt-to-equity ratio Earnings werage Financial leverage Index B. Analyze Riverside's three year trends in profitability, liquidity, and solvency so far as the data permit