Hello! I just need help on 1c. the other picture is exhibit 3-6 page 94 for refrence. Please provide formulas to the wuestion 1c also thank u!

W File Edit View Go Tools Window Help Case4 Sweet Dreams.pdf (1 page) Q Search CHAPTER 3: FINANCIAL STATEMENT ANALYSIS TOOLS 1. Sweet Dreams Corp. has prepared the following financial statements: Sweet Dreams Corp. Income Statement For the Year Ended Dec. 31 2017 2017 2016 Sales 3,074,000 2.567.000 Cost of Goods Sold 2.088.000 1.711.000 Gross Profor 986,000 856,000 Selling and G&A Expenses 294,000 295.000 Fixed Expenses 35,000 35.000 Depreciation Expense 239.000 223,000 ERIT 418,000 303,000 Interest Expense 93.000 91.000 Earnings Before Taxes 325,000 212,000 Taxes 94.000 64.000 Net Income 231,000 148,000 Sweet Dreams Corp. Balance Sheet As of Dec. 31 2017 Assets 2017 Cash 431.000 Accounts Receivable 503.000 Inventories 289,000 Total Current Assets 7.223.000 Gross Fixed Assets 4.669.000 Accumulated Depreciation 2.295.000 Net Fixed Assets 2,374,000 Total Assets 3,597,000 Liabilities and Owners' Equity Accounts Payable 382.000 Short-term Notes Payable 79,000 Accrued Expenses 159.000 Total Current Liabilities 620,000 Long-term Debt 1.023.000 Total Liabilities 1.643.000 Common Stock 819.000 Retained Earnings 1.135.000 Total Shareholder's Equity 7.954.000 Total Liabilities and Owners' Equity 3,597,000 2016 339,000 365.000 300,000 1.00000 4,322.000 2,056.000 2.266.000 3,270,000 270.000 99,000 114.000 483.000 967.000 1.450.000 808.000 1,012.000 2.820,00 3,270,000 a) Set up a worksheet similar to the one in Exhibit 3-6, page 92, and calculate all of the ratios for Sweet Dreams Corp. b) Verify the change in 2017 Sweet Dreams Corp's ROE using the Du Pont method. c) Using the Altman's model for privately held firms and public ones, calculate the Z-score for Sweet Dreams Corp. Assume that the market value of Sweet Dreams Corp. is $1,200,000. d) Using the following 2017 industry averages, evaluate Sweet Dreams Corp's financial situation. RATIOS VS. INDUSTRY AVERAGES D 1 2 B Elvis Products International Ratio Analysis for 2015 and 2016 Industry 2016 2.70x 1.00x 7.00x 10.70x 33.64 days 11.20x 2.60x 3 Ratio 2016 2015 4 Liquidity Ratios 5 Current Ratio 2.39x 2.33x 6 Quick Ratio 0.84x 0.85x 7 Efficiency Ratios 8 Inventory Tumover 3.89x 4.00x 9 AR Tumover 9.58x 9.77x 10 Average Collection Period 37.59 days 36.84 days 11 Fixed Asset Tumover 10.67% 9.95% 12 Total Asset Turnover 2.33x 2.34x 13 Leverage Ratios 14 Total Debt Ratio 58.45% 54.81% 15 Long-term Debt Ratio 25.72% 22.02% 16 LTD to Total Capitalization 38.23% 32.76% 17 Debt to Equity 1.41x 1.21x 18 LTD to Equity 61.90% 48.73% 19 Coverage Ratios 20 Times Interest Eamed 1.97x 3.35x 21 Cash Coverage Ratio 2.23x 3.65x 22 Profitability Ratios 23 Gross Profit Margin 15.58% 16.55% 24 Operating Profit Margin 3.89% 6.09% 25 Net Profit Margin 1.15% 2.56% 26 Return on Total Assets 2.68% 5.99% 27 Return on Equity 6.45% 13.25% 28 Retum on Common Equity 6.45% 13.25% 50.00% 20.00% 28.5796 1.00x 40.00% 2.50x 2.80x 17.50% 6.25% 3.50% 9.10% 18.20% 18.20%