Exercise 3-3 1. Charlie's fishing Company is a growing business in downtown Chicago. Charlie's balance sheet shows beginning assets of $1,000,000 and an ending balance of $2,000,000 of assets. During the current year, Charlie's company had net income of $20,000,000. Use the above information to answer a, & b. a. Calculate for Charlie's return on assets. b. What does this mean for this business? 2. Tammy's Tool Company is a retail store that sells tools to farmers across the country. Tammy reported net income of $100,000 and issued preferred dividends of $10,000 during the year. Tammy also had 10,000 outstanding shares with the value of $5 per common shares, during the year. Use the above information to answer a - e. a. What does preferred dividends mean? b. In this example the actual net income=? c. How much common equity Tammy had? d. Calculate Tammy's return on common equity. (Express your answer in percent) e. What does return on common equity indicate? Does Tommy's company a down swing or Upswing Company? Justify your answer. 3. Trisha's Tackle Shop is an outdoor fishing store that sells lures and other fishing gear to the public. Last year Trisha had the best year in sales she has ever had since she opened the business 10 years ago. In 2019, Trisha's net sales were $1,000,000 and her net income was $100,000. Contrast to 2018 numbers of $800,000 of net sales and $200,000 of net income. Use the above information to answer a - C. a. Compare both years performance using the profit margin. b What would be some factors for the improvement of the profit margin in the above scenario? c. If you were the manager of this business, what strategies you can take to achieve higher profit margin in the following year