a) What is the purpose of using common size balance sheets and common size income statements? (5 marks) b) Use the following information to answer the following question(s). Key Ratios for ABC, Inc. and Its Industry ABC, Inc. Income Statement (in thousands) December 31, 2013 3 ABC, Inc. Balance Sheet (in thousands) ABC, Inc. Balance Sheet (in thousands) Compute the following ratios for ABC for accounting period ending December 2013 (i) Average collection period (6 marks) (ii) Inventory turnover (iii) Current Ratio (iv) Net Profit Margin (v) Return on Equity (vi) Debt Ratio Use ratio analysis to evaluate ABC Inc. financial performance in 2014 relative to 2013 and the industry. (10 marks) c) Suppose you are 40 years old and plan to retire in exactly 20 years from today. 21 years from now you will need to withdraw $5,000pur year from a retirement fund to supplement your NIS payments. You expect to live to the age of 85 . How much money should you place in the retirement fund each year for the next 20 years to reach your retirement goal if you can earn 12% intere it per year from the fund? (9 marks)