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Can I get help with #3 and #4 please? Tinancial Statements and Ratios Bike-With-Us Corporation, a specialty bicycle Parts ture, was started last year by

Can I get help with #3 and #4 please?image text in transcribed

Tinancial Statements and Ratios Bike-With-Us Corporation, a specialty bicycle Parts ture, was started last year by two former professional cyclists who had substantial ration, a specialty bicycle parts replacement ven- experience, including the Tour de France. The two entrepreneurs borrowed $50,000 T ofessional cyclists who had substantial competitive racing two entrepreneurs borrowed $50,000 from members of their families, and each put up $30,000 in equity capital. Retail space was rented, and so for fixtures and store equipment. Following is the abbreviated income statem unty capital. Retail space was rented, and $60,000 was spent "Pment. Following is the abbreviated income statement and balance sheet infor- mation for the Bike-With-Us Corporation after one year of operation. BIKE-WITH-US CORPORATION $325,000 285,000 10,000 5,000 6,000 Sales Operating costs Depreciation Interest Taxes Cash Receivables Inventories Fixed assets, net Payables Accruals Long-term loan Stockholders' equity $1,000 30,000 50,000 50,000 11,000 10,000 50,000 60,000 A. Prepare an income statement and a balance sheet for the Bike-With-Us Corporation using only the information provided above. B. Calculate the current ratio, quick ratio, and NWC-to-total-assets ratio. C. Calculate the total debt-to-total-assets ratio, debt-to-equity ratio, and interest coverage. D. Calculate the net profit margin, sales-to-total-assets ratio, and the return on assets. E. Calculate the equity multiplier. Combine this calculation with the calculations in Part D to show ROE model with its three components. 4. Financial Ratiosl Use the financial statement data for the Bike-With-Us Corporat Problem 3 to make the following calculations: A. Calculate the operating return on assets. . Determine the effective interest rate paid on the long-term debt. C. Calculate the NOPAT margin. How does this compare with the results for the net profit margin Did the owners benefit from the use of interest-bearing long-term debt

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