AS The following is the income statement for the year ended October 31, 2019 and the balance sheet as of October 31, 2019 for M & K Design Limited. Also included is some additional information to assist you in your calculations and analysis: M&K Design Limited Income Statement For Year Ended October 31, 2019 Sales $1,700,000 Cost of goods sold 884.000 816,000 Depreciation expense 65,000 Operating expenses 527.700 223,300 Interest expense 8.000 Income before tax 215 300 Income tax expense 30.000 S185.300 M&K Design Limited Balance Sheet October 31, 2019 Assets Ch 522.000 Accounts receivable 122.000 Inventory 96.000 240,000 Furniture and Equipment 700,000 Accumulated depreciation furniture and equipment (300,000) Long term investment 125.500 $25.500 $265.900 Liabilities & Shareholder's Equity Liabilities Accounts payable S158,000 Salary pryable 12,000 Income tax payable 30.00 200,000 Bunk loan (long-term) 75.000 Shareholder's Equity Common shares 50,000 Retained earnings 440,90 490.00 5765.300 Selected data from October 31, 2018 financial statements: Total assets $683,500 Accounts receivable S107,500 Inventory $ 60,000 Accounts payable $175,000 Required: A. Calculate 10 ratios (see page 7) to help you analyze M & K Design Limited Some limited industry averages & comparative ratios are provided on the next page. B. Using at least 4 ratios calculated above to answer the following: M&K Design has come to you looking for a loan of S40,000 to be repaid over 5 years. Would you be willing to loan them the money? Provide an explanation for answer. The following information is available for Giross profit margin ratio Return on sales profil marin) Rale of rum on as Debt ratio Curato Asset tumor Quick Ratio Industry averages 29/9 50.00 ger 99% 25 .40 1.5 2.1 .75 MAK Design 2018 47.29 9.55 .24 45 1.0 2.0 .67