c. bc bcc cl tal 1 to 2 3 to 4 abc his #t 2. 4 Madza Corporation Below are the two most recent balance sheets and most recent income statement-for-Madza Corporation. The company has an effective tax rate of 35%. (60 points) Balance Sheet 2019 2018 Assets Cashe Accounts Receivable (net) Inventory Long-lived-assets Less:"Accumulated depreciation "Total-assets $10,000 **6,000 ***8,000 12,000 M14,000) $32,000 $"6,000 1,500 10,000 11,000 (2.000) $26.500 Liabilities and Stockholders'Equity: Accounts payable Deferred-revenues Long-term-note-payable Less: Discount on note payable- Common stock Retained earnings ---Total-liabilities and stockholders' equity Income Statement $"5,000 1,000e 10,000 (800) 12,000 14,800 $32,000 $ 6,000 2,000 10,000 (1,000) 6,000 3.500 $26.500 For the year ended December 31, 2019 Revenues Cost of goods solde Depreciation expenses Interest expenses Bad debt expenses Other expense (including income taxes) Net-income $42.000 (24,000) (2,000) (3.000) (2.000) 19.000) $ 2,000 a. Based on the above balance sheets and most recent income statement, calculate the return on assets, return on common shareholders' equity and profit margin for Madza Corporation. Show the relevant formula b. Discuss how the following three elements of risk help us understand return on assets differs across firms and changes over time 1.-Operating leverage 2.-Cyclicality of sales 3.- Product life cycle 15:03