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Consider the following simplified Statement of Comprehensive Income and Statement of Financial Position from Victory Corporation's 2021 Annual Report to Shareholders. Victory Corporation Statement

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Consider the following simplified Statement of Comprehensive Income and Statement of Financial Position from Victory Corporation's 2021 Annual Report to Shareholders. Victory Corporation Statement of Comprehensive Income ($ millions) Net sales $99,888 Cost of goods sold $59,856 Depreciation $14,280 Earnings Before interest and tax $25,752 Interest paid $3,840 Taxable income(EBT) $21,912 Taxes $7,452 Net income $14,460 Victory Corporation Statement of Financial Position 2020 & 2021 ($ millions) 2020 2021 2020 2021 Cash $64,980 $40,092 Accounts payable $13,320 $19,800 Accounts rec. $29,520 $11,748 Notes payable $30,000 $22,800 Inventory $28,860 $34,620 Total $43,320 $42,600 Total $123,360 $86,460 Long-term debt $57,600 $55,200 Net fixed assets $147,600 Total assets $270,960 $200,640 Common stock Retained earnings $287,100 Total liabilities and Owner's equity $61,200 $70,800 $108,840 $118,500 $270,960 $287,100 d) Calculate the following financial ratios for Victory Corporation for 2021 only (9 marks - 1 each) i. Current ratio ii. Quick ratio iii. Return on assets iv. Debt-to-equity ratio V. Equity multiplier vi. Total Asset Turnover vii. Profit Margin viii. Times interest earned ratio ix. ROE use DuPont e) The Victory Corporation is considering getting an additional short term (operating) loan from the bank to finance inventory and accounts receivable. Which of the above ratios do you think the bank will be interested in and why? (2 marks) f) The Victory Corporation is considering getting an additional long-term loan from the bank to finance the purchase of new equipment. Which of the above ratios do you think the bank will be interested in and why? (2 marks)

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