Here is a balance sheet for Bellringer, Inc. for 2018 Cash $50,000 Accounts receivable 20,000 Inventory 30,000 Accounts payable Notes payable Current liabilities Long-term debt Owners' equity Total liab. & equity $60,000 25,000 $85,000 $140,000 $175,000 $400,000 Current assets Net fixed assets Total assets $100,000 $300,000 $400,000 Bellringer Inc. had Sales of $500,000 in 2018 and $550,000 in 2019. Manufacturing costs were $250,000 in 2018 and $300,000 in 2019. Administrative expenses were $40,000 in 2018 and $60,000 in 2019. Assume a 20% tax rate. Assume a dividend rate of 50% to Net income and an Addition to Earnings ratio of 50% to net income for each year. Depreciation was $50,000 for 2018 and $70,000 for 2019. Interest paid on loans was $10,000 in 2018 and $20,000 in 2019.

A. Prepare a common-sized income statement for each year (2018 AND 2019) using all of the above categories in the above narrative, as well as the following categories Taxes, EBIT, Taxable Income, Dividends, and Addition to retained earnings.

B. Youarea90dayshorttermlenderassessingtheriskofyourloantoBellringer, Inc. Using the tools you learned in this course thus far, what analysis do you perform based upon its financial statements for 2018. Use three formulas in your calculations.

C. Can you prepare all (3) profitability ratios for both 2018 and 2019 with the information given. Explain why if you cannot prepare all three ratios. Prepare (3) profitability ratios for years you are able, explain.