Eignment (...* Q 113 | A to 75% critical thinking exercise 17-4 CALCULATING FINANCIAL RATIOS (ADVANCED) You are considering investing in Acme Incorporated. The company has provided you with the balance sheet and income statement for the previous year. The current price of one share of stock is $46.25. Earning per share last year was $1.86. 1. Caloulate the requested financial ratios: a. Current ratio b. Debt-to-equity ratio c. Return on sales (use net income AFTER taxes) d. Return on equity (use net income AFTER taxes) e Earnings per share (use net income AFTER taxes) 2. Would you invest in Acme Incorporated? Why or why not? APLENDORPORATED ILLANCE NET Deonber 31, 2017 ARBETS 200.999 Account Recible Note Role 108,894 STT 216.168 2 Preppers and other Durante Total Current Anal 2.168.500 $1,744,701 $49.930 Red As $510.000 Phant and Buildings 306 ODS Ecument 218,500 Toll Rod Assets Other Ans Goodwill, Net $49.990 Tots Other Assa TOTAL ASSETS LIABILMES AND STOCKHOLDERS' EQUITY Ourentabilis Accounts Payable $226,977 Accrued Expenses and Other 380,496 Current Liabilities Current Portion of Finance Debt 382.579 Total Current Liabilities $0.91.217 $990.002 Long-Term Labines Notes Payable Bonds Other Long-Term Liabilities Total Long-Term Labies $228,772 380,000 $29,478 638.250 Total Liabilities 51.628 303 $319,538 Owner's Equity Common Stock (342,195 Shares Outstanding Rotared Earnings Total Owners' Equity 1.843.312 $2.232.915 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 53.361.217 nent (..* 213 | A o 75%. ACME INCORPORATED STATEMENT OF INCOME FY 201X REVENUES Net Sales Other Income Total Revenue COST OF GOODS SOLD $4,090,970 +104,227 $4,195,197 $2.673 129 $1,522,068 GROSS PROFIT (GROSS MARGIN) OPERATING EXPENSES Total Selling Expenses Total General Expenses Total Operating Expenses NET INCOME BEFORE TAXES Income Tax Paid (25%) NET INCOME AFTER TAXES $333,300 + 306,036 $639,336 $882,732 $220.683 $662,049