First Question: Read and analyze the following financial statements for NANO CO. for 2017. Then answer the questions: Income statement For year ended 31/12/2017 2017 Sales (75% credit) 130000 Cost of Goods Sold -88000 Gross Profit 42000 Operating expenses -24000 EBIT 18000 Interest Expense -2000 Earnings Before Taces 16000 Taxes @ 40% -6400 Net Income 9600 2016 80000 -42000 38000 -20000 18000 -2000 16000 -6400 9600 Statement of financial position As of 31/12/2017 2017 2016 Cash and Equivalents 5000 3000 Accounts Receivable 25000 15000 Inventory 19000 21000 Total Current Assets 49000 39000 Property Plant & Equipment(net) 55000 40000 Total Assets 104000 79000 Total Current Liabilities 25000 15000 Long-term Debt 28000 20000 Total Liabilities 53000 35000 Common Stock (40000 shares @ $i par 40000 40000 value) Treasury shares (3000 shares @ $1 par -4000 -4000 value) Retained Earnings 15000 8000 Total Shareholder's Equity 51000 44000 Total Liabilities and Owner's Equity 104000 79000 Additional information from past years and from industry: Current ratio of industry is 2:1. Market sales in 2016 is $ 280000 Market sales in 2017 is $ 500000 Collection period for competitors is 30 days. Days to sell inventory in industry is 20 days. Average Debt to equity ratio in last years is 35% put your analysis report for NANO co. for 2017 in details (calculation, comments, expectations and conclusions): 1. Analyze the following items horizontally: sales, inventory, cost of goods sold, accounts receivables. 2. Analyze the following items vertically: sales, inventory, cost of goods sold, accounts receivables. 3. Analyze the company liquidity position. 4. Compute total debts to assets ratio, times interest eamed. 5. If the company sells from its inventory costs $2000, by $ 2500 on accounts, what are the effects on the following ratios: current ratio, quick ratio, collection period. - compute ratios in details and comment. 6. Compute ROA and ROCE and their components, then comment on findings. First Question: Read and analyze the following financial statements for NANO CO. for 2017. Then answer the questions: Income statement For year ended 31/12/2017 2017 Sales (75% credit) 130000 Cost of Goods Sold -88000 Gross Profit 42000 Operating expenses -24000 EBIT 18000 Interest Expense -2000 Earnings Before Taces 16000 Taxes @ 40% -6400 Net Income 9600 2016 80000 -42000 38000 -20000 18000 -2000 16000 -6400 9600 Statement of financial position As of 31/12/2017 2017 2016 Cash and Equivalents 5000 3000 Accounts Receivable 25000 15000 Inventory 19000 21000 Total Current Assets 49000 39000 Property Plant & Equipment(net) 55000 40000 Total Assets 104000 79000 Total Current Liabilities 25000 15000 Long-term Debt 28000 20000 Total Liabilities 53000 35000 Common Stock (40000 shares @ $i par 40000 40000 value) Treasury shares (3000 shares @ $1 par -4000 -4000 value) Retained Earnings 15000 8000 Total Shareholder's Equity 51000 44000 Total Liabilities and Owner's Equity 104000 79000 Additional information from past years and from industry: Current ratio of industry is 2:1. Market sales in 2016 is $ 280000 Market sales in 2017 is $ 500000 Collection period for competitors is 30 days. Days to sell inventory in industry is 20 days. Average Debt to equity ratio in last years is 35% put your analysis report for NANO co. for 2017 in details (calculation, comments, expectations and conclusions): 1. Analyze the following items horizontally: sales, inventory, cost of goods sold, accounts receivables. 2. Analyze the following items vertically: sales, inventory, cost of goods sold, accounts receivables. 3. Analyze the company liquidity position. 4. Compute total debts to assets ratio, times interest eamed. 5. If the company sells from its inventory costs $2000, by $ 2500 on accounts, what are the effects on the following ratios: current ratio, quick ratio, collection period. - compute ratios in details and comment. 6. Compute ROA and ROCE and their components, then comment on findings