CS-2 CO 3 4 5 The following information has been taken from the financial statements of Ivory Inc. Ivory Inc. Current Assets, December 31, 2019 Total Assets, January 1, 2019 Total Assets, December 31, 2019 Current Liabilities, December 31, 2019 Total Liabilities, December 31, 2019 Stockholders' Equity, January 1, 2019 Stockholders' Equity, December 31, 2019 $175,000 500,000 575,000 75,000 175,000 300,000 400,000 Net Sales Depreciation Expense Interest Expense Income Tax Expense Net Income 900,000 10,000 20,000 25,000 40,000 Required a) Given the data for Ivory Inc., calculate the following ratios for 2019 (round to two decimal places). The company's ratios for 2018 are given for comparison. 2018 i) 3.5 ii) iii) iv) v) vi) Ratio Current Ratio Times Interest Earned Ratio Debt-to-Equity Return on Assets Return on Equity Net Profit Margin 5.40 25.00% 12.50% 20.20% 8.60% Ratio 2019 b) Using 2019 as a comparison, discuss whether the company improved or deteriorated in its ability to (i) pay current liabilities as they come due, (ii) meet its long-term debt obligations and (iii) profitability. Be sure to make reference to specific ratios in your answers