For Questions through 5. please use the following balance sheet of Acme Corp. (in thousand dollars) Cash 80 Accounts receivables 315 Inventories 415 Plant & equipment 870 Accounts payables Notes payable 60 Long-term bonds 580 Common equity 150 Retained earnings 750 160 1. Is this balance correct? Please provide support of your answer. (5 points) 2. Based on this balance sheet, what is the current ratio of Acme Corp? If the industry average is 4.2, what can you say about this company's performance? (5 points) 3. What is the debt ration of the company? Comparing to the industry average of 0.4. does the company carry more or less debt than other companies in the same industry? (5 points) 4. Company record shows that when Acme Corp went public, it issued a total of 130,000 common shares at $0.25 each. There has been no new share issue since. Based on this record, can you correct the error of the balance sheet? (5 points) S. Using the corrected balance sheet, what is the return on common equity (ROE)? (5 points) 6. For a loan of S10,000 at APR 6% to be amortized in 1 year. what is the monthly payment at the end of each month? After the first payment, what will the loan balance be? (5 points) 7. Using the data in Question 6, what is the periodic rate and the effective annual rate? (Hint: they are different) (5 points)