A. Engmann, Inc. Income Statement (expressed in millions, except per share data) for the Year Ended December 31, 2020 2020 2019 Sales $ 2,700.00 $ 2,650.00 Less Cost of goods sold 2,025.00 1,980.00 Gross profit 675.00 670.00 Less Operating expenses: Selling expenses 90.00 83.00 General and administrative expense 67.50 64.50 Depreciation and amortization expense 135.00 134.50 Total operating expense 295.50 282.00 Net operating income (EBIT or earnings before interest and tax) 382.50 388.00 Less Interest expense 67.50 81.20 Earnings before taxes 315.00 306.80 Less Income taxes 110.25 105.90 Net income 204.75 200.90 Additional information: Dividends paid to stockholders $ 45.00 $ 36.90 Number of common shares outstanding 90.00 90.00 Earnings per share (EPS) $ 2.28 $ 2.23 Dividend per share 0.50 0.41 Price per share 68.22 66.50 A. Engmann. Inc. Balance Sheet ($ millions) At 31st December, 2020 2020 2019 2020 2019 Assets Liabilities and Owners' Equity Cash $ 90.00 $ 94.50 Accounts payable $ 189.00 $ 184.50 Accounts receivable 162.00 139.50 Accrued expenses 45.00 45.00 Inventory 378.00 229.50 Short-term notes 54.00 63.00 Other current assets 13.50 13.50 Total current liabilities 288.00 292.50 Total current assets 643.50 477.00 Long-term debt 771.75 720.00 Gross plant and equipment 1,845.00 1,669.50 Total liabilities 1,059.75 1,012.50 Less accumulated depreciation 517.00 382.50 Common stockholders' equity Net plant and equipment 1,327.50 1,287.00 Common stock - par value 45.00 45.00 Total assets 1,971.00 1,764.00 Paid in capital 324.00 324.00 Retained earnings 542.25 382.50 Total common stockholders' equity 911.25 751.50 Total liabilities and stockholders' equity 1,971.00 1,764.00 Given the information above calculate the following financial ratios for 2019 and 2020. 1. Debt ratio 2. Debt to equity ratio 3. Equity Multiplier 4. Debt to capital ratio 5. Times interest earned ratio 6. Gross profit margin 7. Net profit margin 8. Return on Assets (ROA) 9. Return on equity (ROE). 10. Market/book (M/B) ratio 11. Price/Earnings ratio 12. Dividend Payout ratio 13. Dividend Retention Ratio You are to compute the ratios from numbers 1 to 23 for 2019 and 2020. Interpret the ratios and give possible reasons for the trends you see based on your understanding of the ratios and what goes into their computation. The focus should be on doing a good interpretation or analysis on the ratios calculated and not just computing the ratios and leaving it at that. Please take note of

a and b. a) What will be A. Engmann Incs average payment period for 2019 if historically annual credit purchases have represented about 80% of cost of goods sold? b) What will be the A. Engmann Inc.s average payment period for 2020 if historically annual credit purchases have represented about 80% of cost of goods sold?