art- Ratios.Benchmarking, VCAs Capital Budgeting (40 points a) Ratios and Benchmarking (12 points) Consider the following (simplified) balance sheet and income statement of a sider company Income Statement Net Sales Total Cost of Goods Sold Gross Profit (Margin) 19,500,000 16,500,000 3,000.000 2.100.000 900,000 50,000 600,000 350,000 122.500 227.500 ota Net Operating Income Other Revenue Interest Expense Net Income Before Taxes Taxes Net Income After Taxes Balance Sheet Assets Liabilities Current Assets Fixed Assets Other Assets 5,000,000 3.500,000 50,000 Current Liabilities: Long Term Liabilities Total Owner Equit 1,500,000 1,000,000 6,050,000 i. Calculate the necessary ratios, and perform a DuPont Profitability analysis. Once you have all the (6 points) ratios needed, discuss thoroughly ALL the sources of variation in the ROE ii. Consider the following benchmark ratios Profitability ROS ROE Gross Margin Ratio Current Ratio Debt to Equity Debt to Assets ATR 1.17 3.98 11.28 2.5 0.49 0.33 2.28 Liquidit Solvency Efficienc Calculate the ratios listed in the table above for the input supplier. You should have already calculated some of those ratios to answer the previous question. Once you have all the ratios, discuss briefly the financial situation of the input supplier, touching upon the four types of indexes. (6 points) art- Ratios.Benchmarking, VCAs Capital Budgeting (40 points a) Ratios and Benchmarking (12 points) Consider the following (simplified) balance sheet and income statement of a sider company Income Statement Net Sales Total Cost of Goods Sold Gross Profit (Margin) 19,500,000 16,500,000 3,000.000 2.100.000 900,000 50,000 600,000 350,000 122.500 227.500 ota Net Operating Income Other Revenue Interest Expense Net Income Before Taxes Taxes Net Income After Taxes Balance Sheet Assets Liabilities Current Assets Fixed Assets Other Assets 5,000,000 3.500,000 50,000 Current Liabilities: Long Term Liabilities Total Owner Equit 1,500,000 1,000,000 6,050,000 i. Calculate the necessary ratios, and perform a DuPont Profitability analysis. Once you have all the (6 points) ratios needed, discuss thoroughly ALL the sources of variation in the ROE ii. Consider the following benchmark ratios Profitability ROS ROE Gross Margin Ratio Current Ratio Debt to Equity Debt to Assets ATR 1.17 3.98 11.28 2.5 0.49 0.33 2.28 Liquidit Solvency Efficienc Calculate the ratios listed in the table above for the input supplier. You should have already calculated some of those ratios to answer the previous question. Once you have all the ratios, discuss briefly the financial situation of the input supplier, touching upon the four types of indexes. (6 points)