Financial Analysis Background The income statement for the French Quarter Bicycle Company, a producer of consumer bicycles, is shown below. French Quarter Bicycle has total assets of $850 thousand, and its owner's equity is $645 thousand. Consolidated Earnings and Retained Earnings Year Ended December 31 2019 Net sales $1,285,000 $984,000 $301,000 $145,000 $5,000 Cost of goods sold Gross profit Total operating expenses expense Interest expense Net income before taxes Federal taxes Net Income Net earnings per share $151,000 $17,200 $133,800 $2.94 Task Calculate the following profitability ratios: profit margin, return on assets, and return on investment. Assume that the industry averages for these ratios are as follows: profit margin, 12 percent; return on assets, 18 percent; and return on equity, 25 percent. Evaluate French Quarter's profitability relative to the industry averages. Questions: Show the equation used and the step by step calculation process) 1. profit margin- 2. return on assets = 3. return on investment = 4. Comparison of French Quarter Bicycle Ratios with the Industry French Quarter Industry Difference Profit margin Return on assets Return on invest. 5. Based on your calculation of the profit margin, how would you evaluate the cost controls at French Quarter Bicycle versus the industry? What does that mean for the Managers running the company? 6. List an example of an asset, and of a liability (one of each), that might be shown as line items on French Quarter's balance sheet? Indicate whether the items listed are current, fixed, or long-term