eing able to read and analyze financial statements is an important skill for managers and investors. In this assignment you will calculate a number of measures derived from a simple income statement and balance sheet. Income Statement Item Value Sales $5,234,198 Cost of Goods Sold $3,659,135 Gross Profit $1,575,063 Selling Expense $227,295 General & Administrative $826,340 Total Operating Expense $1,053,635 Operating Profit $521,428 Less Income Tax (40%) $208,571 Net Profit $312,857 Dividends Paid (100k shares) $100,000 Continued on next page... Student or Team Name: Balance Sheet Account Value Cash $165,852 Accounts Receivable $589,367 Inventory $1,765,129 Plant & Equipment $5,500,000 Less Depreciation $1,100,000 Net Plant & Equipment $4,400,000 Total Assets $6,920,348 Account Value Accounts Payable $496,231 Long-Term Debt $2,950,000 Total Liabilities $3,446,231 Common Stock $2,000,000 Retained Earnings $1,474,117 Total Equity $3,474,117 Total Liability & Equity $6,920,348 Use the financial statements above to calculate the following measures: Measure Formula Value 1. Current Ratio current assets current liabilities 2. Debt to Equity Ratio total debt total equity 3. Gross Margin gross profit sales 4. Return on Sales (ROS) net profit sales 5. Return on Equity (ROE) net profit total equity 6. Earnings per Share (EPS) net profit shares outstandin