FIN 350: HW #1: Financial Analysis\ Total Points: 10 Due Date: Midnight, Monday January 22\ Submit answers at the Canvas Course Webpage\ EMU, Inc.\ Balance Sheet\ Assets 2021 2020\ Cash 120 $102\ S.T. Investments 30 40\ Accts Receivable 400 384\ Inventories 1,200 774\ Total Current Assets 1,750 1,300\ Net PP&E 3,000 1,780\ Total Assets 4,750 3,080\ Liabilities\ Accts Payable 100 180\ Notes Payable 100 28\ Accruals 300 370\ Current Liabilities 500 578\ L.T. Bonds 520 350\ Preferred Stock 200 100\ Common Stock 530 500\ Retained Earnings 3,000 1,552\ Total Equity 3,530 2,052\ Total Liab. & Equity 4,750 3,080\ Income Statements\ 2021 2020\ Net Sales 5,500 4,800\ COGS except Dep 3,800 3,710\ Depreciation & Amortization 180 180\ Other Operating Expenses 600 470\ EBIT 920 440\ Less: Interest 60 40\ Pre-tax Earnings 860 400\ Taxes(25%) 215 100\ Preferred Dividends 15 7\ Net Income for CS Holders 630 293\ Number of Common Stock Outstanding = 1,200\ Price of Common Stock = 4.00\ WACC = Cost of Capital = 12.0%\ Return on Investment (ROI)= 15.97%\ Answer the following questions:\ In 2021:\ 1. Was Inventories a source or a use of funds? (1 Point)\ 2. Was Accounts Payable a source or a use of funds? (1 Point)\ 3. What is Total Net Operating Capital of EMU? (2 Points)\ 4. What is EMUs MVA? (2 Points)\ 5. What is EMUs EVA in? (2 Points)\ 6. What is the current Ratio of EMU? (1 Point)\ 7. What is the Price/Earnings Ratio of EMU? (1 Point)