EXERCISE CHAPTER 3 BE Corp. 2018 and 2019 Balance Sheets Assets Liabilities and Owners' Equity 2018 2019 2018 2019 Current Assets Current Liabilities Cash 21,860 22,050 Acct. Payable 19,320 22,850 Acct. Receivables 11,316 13,850 Notes Payable 10,000 9,000 Inventory 23,084 24,650 Other 9,643 11,385 Total 56.260 60,550 Total 38,963 43,235 Long-term debt 75,000 85.000 Owners' equity Common Stock & paid-in surplus 25,000 25,000 Fixed Assets Accumulated Retained Earnings 151,365 167,840 Net Plant & Equipment 234,068 260,525 Total 176,365 192,840 Total Assets 290,328 321,075 Total Liabilities & Equity 290,328 321,075 BE Corp. 2019 Income Statement Sales Cost of Good Sold Depreciation EBIT Interest Taxable income Taxes (35%) Net Income 305,830 210,935 26,850 68,045 11,930 56,115 19,640 36,475 Dividends Retained Earnings 20,000 16,475 1. Calculating Financial Ratios. Find the following financial ratios for GE Corp. (Use year- end figures rather than average values where appropriate): Short-term solvency ratios: a. Current ratio b. Quick ratio c. Cash ratio i. ii. Asset Turnover Ratios: d. Total asset turnover e. Inventory turnover f. Receivables turnover iii. Long-term solvency ratios: g. Total debt ratio h. Debt-equity ratio i. Equity multiplier j. Times interest earned ratio k. Cash coverage ratio iv. Profitability ratios: 1. Profit margin m. Return on assets n. Return on equity 2. Calculate the 2019 ROE for BE Corp. and then break down your answer into its component parts using the Du Pont identity