• Calculate the: net profit margin; total-sales-to-total-assets ratio; the equity multiplier; and the return on equity for both 2017 and 2018. Use yearly data for calculation. What happened between the two years?

                                                                                                  

INCOME STATEMENT	2017	2018
Net sales	$900,000	$1,500,000
Cost of goods sold	540,000	900,000
Gross profit	360,000	600,000
Marketing	90,000	150,000
General and administrative	250,000	250,000
Depreciation	40,000	40,000
EBIT	-20,000	160,000
Interest	45,000	60,000
Earnings before taxes	-65,000	100,000
Income taxes	0	25,000
Net income (loss)	-$65,000	$ 75,000
BALANCESHEET	2017	2018
Cash	$ 50,000	$ 20,000
Accounts receivable	200,000	280,000
Inventories	400,000	500,000
Total current assets	650,000	800,000
Gross fixed assets	450,000	540,000
Accumulated depreciation	-100,000	-140,000
Net fixed assets	350,000	400,000
Total assets	$1,000,000	$1,200,000
Accounts payable	$ 130,000	$160,000
Accruals	50,000	70,000
Bank loan	90,000	100,000
Total current liabilities	270,000	330,000
Long-term debt	300,000	400,000
Common stock (0.05 par)	150,000	150,000
Additional paid-in-capital	200,000	200,000
Retained earnings	80,000	120,000
Total liabilities and equity	$1,000,000	$1,200,000

1.