both income statement and balance sheet are for 2018

BD BD 5000000 3700000 1300000 XY2 Income Statement lord ILLUM Particulars Sales Revenue Less: Cost of Goods Sold Gross Profit Less: Operating Expenses Selling Expenses General and Administrative Expenses Depreciation Expenses Total Operating Expenses 600000 400000 150000 Less: Interest Expense Net Profit Before Tax Less Tax (40%) Net Profit after Tax Less : Preferred Stock Dividends Net Profit 1150000 150000 90000 60000 24000 36000 Earnings Per Share BALANCE SHEET of XYZ 2018 2017 ASSETS Gross Fixed Assets (at Cost) 50000 50000 Less: Accumulated depreciation 400000 400000 Net Fixed Assets 590000 590000 Current Assets 2018 2060000 500000 1560000 2017 1700000 350000 1350000 LIABILITIES Shareholders Equity Preferred Stock (2500 Shares, 1.60 Dividend) Common stock (100000 Shares @4BD par) Paid in Capital in excess of par Value Retained Eamings Total Stockholders Equity Long Term Debts Current Liabilities Accounts Payable Notes Payable 300000 280000 Cash 25000 24000 1340000 Accounts Receivables 805000746000 1320000 700000 1170000 Inventories 770000 700000 1530000 Total Current Assets 1540000 Accruals 200000 300000 80000 580000 3090000 400000 350000 120000 870000 2890000 Total Current Liabilities TOTAL HABILITIES TOTAL ASSETS 3090000 2890000 Calculul uit 1 2018 financial ratios to fill in the preceding table.(2 mUp Moma Steel Historical Ratio Industry Ratio 1.2 1.0 2.2 Ratio Actual (2016) Actual (2017) Actual (2018) Quick ratio 0.9 Inventory turnover (times) 10.2 5.2 5.0 Average collection period 46 days 50 days 55 days Total asset tumover (times) 2.0 15 1.5 Debt ratio 45.8% 54.3% 24.5% 2.5 Times interest earned ratio 1.9 26.0% Gross profit margin 27.5% 28.0% Net profit margin 1.1% 1.2% 1.0% 2.4% Retum on total assets (ROA) 1.7% 1.5% 3.2% Retum on common equity (ROE) 2. Analyze the firm's over-all current financial position from both a cross-sectional and a time-series viewpoint. Break your analysis into evaluations of the firm'sliquidity, activity, debt, and profitability. (10 marks) = 2 marks Marking scheme: cross-sectional and a time-series (liquidity) cross-sectional and a time-series (activity) - 2 marks = 2 marks cross-sectional and a time-series (debt) = 4 marks cross-sectional and a time-series (profitability) 3.1%