Case study: ABC Farm Supply Store Use the following condensed financial statements (Table 10.5 and Table 10.6) from the ABC Farm Supply Store to develop a profitability analysis model for the company. 1. Follow the step-by-step formula shown in Figure 10.1 and find ABC Farm Supply Store's ROE? (6 pts) 2. Calculate and interpret at least two profitability, liquidity, solvency, and efficiency ratios (2 each), using the information in Table 10.5 and Table 10.6. (8 pts) 3. What are some strengths and weaknesses of the ABC Farm Supply Store identified by your ratio analysis? What other information would be helpful to you in answering this question? (6 pts) 30.4 10 SIS, Nel sales 100% Grossman I. DLA . SH WAN Piet opening profits Wepene M Net terare Couts of good sold Opering + in Rotorum on investment Income . Current Role of lemon war'equity ca Accounts receive + + Investory Prepaid use + Othe 11:19 Land FOTO Building E Other 513.416,660 201 Netssless Assum . Toate 02:00 2.00 Freda SUM 100.000 Current Labs + 1.15 4,077.00 Totalbis and ownerseity Long . Owners guy Owners Table 10.5 ABC Farm Supply Store condensed balance sheet Assets Current Assets Cash Accounts receivable Inventory Total current assets Total fixed assets Total assets $ 171.000 698,000 897,000 $1,766,000 2,482,000 $4,248,000 Liabilities and Owner's Equity Current Liabilities Accounts payable Notes payable Total current liabilities Long-term liabilities Total liabilities $483,000 565,000 $1,048,000 2,000,000 $3,048,000 Owner's contribution Retained earnings Total Owner's Equity Total liabilities and owner's equity $1,000,000 200,000 $1,200,000 $4,248,000 Table 10.6 ABC Farm Supply Store condensed income statement Net Sales Cost of goods sold Gross margin $5,215,000 3,285,450 $1,929,550 Operating expenses Administrative expenses Other expenses Total operating expenses Net operating income Interest expense Net income before taxes Income tax Net income after taxes 1,202,423 320,646 80,161 $1,603,230 $326,320 152,400 $173,920 42,480 $131,440