Gemini Wireless, Inc.Comparative Balance Sheet: Q$1$ & Q$2($Millions of Dollars$)$ASSETSQ$1$LIABILITIES AND EQUITYQ$2$Q$1$Cash and marketable securities$72\mathrm{.}0354\mathrm{.}83$ Short Term Debt$3\mathrm{.}004\mathrm{.}48*$Accounts receivable$11\mathrm{.}8310\mathrm{.}36$ AccrualsInventories$0\mathrm{.}756\mathrm{.}19$ Total current liabilities$3\mathrm{.}004\mathrm{.}48$Total current assets$84\mathrm{.}6171\mathrm{.}38$ Notes payableNet plant and equipment$7\mathrm{.}008\mathrm{.}00$ Long$-$term bondsTotal Long$-$term debtTotal debt$3\mathrm{.}004\mathrm{.}48$Common stock $(50,000,000$ shares$)61\mathrm{.}0361\mathrm{.}03$Retained earnings$27\mathrm{.}5813\mathrm{.}87$Total assets$91\mathrm{.}6179\mathrm{.}38$Total stockholders' equity$88\mathrm{.}6174\mathrm{.}90$Total liabilties and equity$91\mathrm{.}6179\mathrm{.}38*$Since you are paying off your loans throughout the simulation, any debt you have is short$-$term. There is no long$-$term debt in this simulation.$**$Your simulation company only sells common stock. You do not have "preferred" stock.$**$Gemini Wireless, Inc.Comparative Income Statement: Q$1$ & Q$2($Millions of Dollars, Except for Per$-$Share Data$)$Q$2$Q$1$Sales $($i$.$e$.,$ Revenue$)$$$49\mathrm{.}23$$$39\mathrm{.}64$COGS $($i$.$e$.,$ Costs of Goods Sold, Cost of Sales$)$Other Income$17\mathrm{.}9817\mathrm{.}75$Subtotal Gross Profit$31\mathrm{.}2521\mathrm{.}90$Operating ExpensesGeneral & Administative$0\mathrm{.}840\mathrm{.}84$Human Resources$2\mathrm{.}803\mathrm{.}35$Inventory ExpiredInventory Carrying Costs$0\mathrm{.}32\mathrm{.}19$Bad DebtSales & Marketing$6\mathrm{.}506\mathrm{.}50$Research and Development$1\mathrm{.}031\mathrm{.}03$Other$-$Subtotal Expenses$11\mathrm{.}4213\mathrm{.}90$Operating Profit $($Loss$)-$EBITDA$19\mathrm{.}838\mathrm{.}00$Loan Interest Payments$0\mathrm{.}030\mathrm{.}04$Depreciation & Amortization$1\mathrm{.}001\mathrm{.}00$Income Tax $21\%5\mathrm{.}081\mathrm{.}88$Net Profit $($Loss$)$$$13\mathrm{.}72$$$5\mathrm{.}08$Net Profit Margin$28\%13\%$Addition to retained earnings$$13\mathrm{.}72$ $$5\mathrm{.}08$Per$-$share data:Common stock price$$76\mathrm{.}43$$$63\mathrm{.}95$Earnings per share $($EPS$)$$$12\mathrm{.}48$$$4\mathrm{.}61$Gemini Wireless, Inc.Comparative Cash Flow: Q$2($Millions of Dollars$)$Operating ActivitiesNet IncomeAdditions $($Sources of Cash$)$Depreciation and amortizationDecrease in accounts payableIncrease in accrualsSubtractions $($Uses of Cash$)$Increase in accounts receivableDecrease in inventoriesNet cash provided by operating activitiesLong$-$Term Investing ActivitiesCash used to acquire fixed assetsFinancing ActivitiesIncrease in notes payableIncrease in bondsPayment of common and preferred dividendsNet cash provided by financing activitiesNet decrease in cash and marketable securitiesCash and securities beginning of yearCash and securities at end of yearQ$213\mathrm{.}721\mathrm{.}00(1\mathrm{.}48)(1\mathrm{.}47)5\mathrm{.}4417\mathrm{.}21--17\mathrm{.}2154\mathrm{.}8372\mathrm{.}04$Gemini Wireless, Inc.Financial Ratio CalculationsLiquidityCurrent RatioQuick RatioAsset ManagementInventory TurnoverAccounts Receivables TurnoverLeverageDebt RatioDebt to EquityProfitabilityGross MarginReturn on AssetsReturn on Total EquityMarket ValuePrice$/$Earings RatioPerformanceReturn on InvestmentDuPont IdentityDuPont Identity$0201$PMTATEMNote: The DuPont Identity must equal ROE when multiplied. See my handout.ANALYSIS: