Data for questions 12-16 The financial statements of Flathead Lake Manufacturing Company are shown below. Income Statement 2017 Sales Cost of Goods Sold Depreciation Expense Gross Profit Selling and Administrative Expenses EBIT Interest Expense Income before Tax Taxes Net Income $ 9,300,000 5,750,000 550,000 $ 3,000,000 2,200,000 $ 800,000 200,000 $ 600,000 375,000 $ 225,000 Flathead Lake Manufacturing Comparative Balance Sheets 2017 Cash $ 50,000 Accounts Receivable 570,000 Inventory 530,000 Total Current Assets $ 1,150,000 Fixed Assets 2,050,000 Total Assets $ 3,200,000 Accounts Payable $ 320,000 Bank Loans 480,000 Total Current Liabilities $ 800,000 Long-term Bonds 1,500,000 Total Liabilities $ 2,300,000 Common Stock (200,000 shares) 200,000 Retained Earnings 700,000 Total Equity $ 900,000 Total Liabilities and Equity $_3.200.000 2016 $ 40,000 600,000 460,000 $ 1,100,000 1,400,000 $ 2,500,000 $ 300,000 400,000 $ 700,000 1,000,000 $ 1,700,000 200,000 600,000 $ 800,000 $ 2.500.000 Note: The common shares are trading in the stock market for $15 per share. 12) Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's total asset turnover for 2017 is (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.) A) 3.56 B) 3.26 C) 3.14 D) 3.02 13) Refer to the financial statements of Flathead Lake Manufacturing Company. In 2017 Flathead generated of EBIT for every dollar of sales. A) $0.075 B) $0.086 C) $0.092 D) $0.099 14) Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's return on equity ratio for 2017 is _- (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.) A) 6.5% B) 26.5% C) 33.4% D) 38% 15) Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's P/E ratio for 2017 is A) 3.39 B) 3.6 C) 13.33 D) 10.67 16) Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's compound leverage ratio is (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.) A) 1.5; B)2;C) 2.5; D) 3