Being able to read and analyze financial statements is an important skill for managers and investors. In this assignment you will calculate a number of measures derived from a simple income statement and balance sheet. Income Statement Item Value Sales $5,234,198 Cost of Goods Sold $3,659,135 Gross Profit $1,575,063 Selling Expense $227,295 General & Administrative $826,340 Total Operating Expense $1,053,635 Operating Profit $521,428 Less Income Tax (40%) $208,571 Net Profit $312,857 Dividends Paid (100k shares) $100,000Balance Sheet Account Value Account Value Cash $165,852 Accounts Payable $496,231 Accounts Receivable $589,367 Long-Term Debt $2,950,000 Inventory $1,765,129 Total Liabilities $3,446,231 Plant & Equipment $5,500,000 Common Stock $2,000,000 Less Depreciation $1,100,000 Retained Earnings $1,474,117 Net Plant & Equipment $4,400,000 Total Equity $3,474,117 Total Assets $6,920,348 Total Liability & Equity $6,920,348 Use the financial statements above to calculate the following measures: Measure Formula Value 1. Current Ratio current assets : current liabilities 2. Debt to Equity Ratio total debt : total equity 3. Gross Margin gross profit : sales 4. Return on Sales (ROS) net profit : sales 5. Return on Equity (ROE) net profit : total equity 6. Earnings per Share (EPS) net profit : shares outstanding