Given the following income statement, balance sheet, historical ratios, industry averages and additional information analyze Majorels overall financial situation. Income Statement Majorel For the Year Ended December 31, 2019 (All figures are in USD) __________________________________________________________ Sales Revenue 305000 Less: Cost of Goods Sold 105000 Gross Profits 200000 Less: Operating Expenses 55000 Operating Profits 145000 Less: Interest Expense 8450 Net Profits Before Taxes 136550 Less: Taxes (40%) 54620 Net Profits After Taxes 81930 Balance Sheet Majorel For the Year Ended December 31, 2019 Assets $ Cash 90000 Account Receivable 85000 Inventories 68000 Prepaid Expenses 97000 Short Term Investment 55000 Total Current Assets 395000 Gross Fixed Assets 400000 Less Accumulated Depreciation 185000 Net Fixed Assets 215000 Total Assets 610000 Liabilities and Stockholders Equity Accounts Payable 76000 Notes Payable 69000 Accruals 32000 Interest Payable 15000 Total Current Liabilities 192000 Long Term Debts 105000 Mortgage Payable 40000 Total Long Term Liabilities 145000 Total Liabilities 337000 Common Stock 155000 Retained Earnings 118000 Total Stockholders Equity 273000 Total Liabilities and Stockholders Equity 610000 Ratios Majorel 2018 Industry Average 2019 Quick Ratio 1.75 1.55 Inventory Turnover 1.67 1.29 Average Collection Period 110 Days 57 Days Debt Ratio 58% 51% Times Interest Earned 11.67 18.50 Operating Profit Margin 31.50% 46.75 Return on Equity 25.60% 33.75% P/E Ratio 4.88 6.75 ROA 12% 5.75% Current Ratio 1.14 1.25 Net Profit Margin 7.25% 11.16% Additional Information: Depreciation expense of Majorel was $7000 in 2018 and $9000 in 2019. Net fixed assets and current assets were $220000 and $205000 respectively in 2018. Accruals increased by $6000 in 2019 and Accounts payable decreased by $2000 in 2019. Market price of Majorels stock is $32 and number of common stock outstanding is 19750 in 2019. Required: To measure the efficiency, which ratios must be calculated from the list given above? Calculate and Interpret Majorels ratio in 2019 and Compare ratios from cross-sectional view point. (5) Calculate Majorels Total Asset Turnover in 2018 by using Du-Pont Equation. (1) Calculate Majorels EPS in 2019. (1) Calculate the firms operating cash flow (OCF) and free cash flow (FCF) for the year ended December 31, 2019. (4)