Here is a balance sheet for Bellringer, Inc. for 2018 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 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 following categories Taxes, EBIT, Taxable Income, Dividends, Addition to retained earnings. (9 points) B. You are a 90 day short term lender assessing the risk of your loan to Bellringer, 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. ( 9 points) C. Can you prepare all (3) profitability ratios for both 2018 and 2019 with information given. Explain why if you cannot prepare all three ratios. Prepare (3) profitability ratios for years you are able, explain. (6 points) PROBLEM 2 (10 Points) SHOW YOUR WORK Bellringer, Inc. was listed on the NY Stock Exchange and on 12/31/18 and its PE ratio was 5.0 times. It currently has 100 shares outstanding. A. Calculate its earning per share for 2018 (5 points) B. Calculate it's price per share for 2018 (5 points)