If you can especially solve the 5th and the 6th questions with the interpretions. I have solved first 4 questions.

0.95 200 000 The credit manager at Bank of New York has just received the income statement and balance sheet for Cosmo. Inc. the year ended December 31.2019. The bank requires the firm to report its earnings performance and financial position quarterly as a condition of a loan agreement. The bank's credit manager must prepare two key financial statements based on the information sent by Cosmo, Inc. This will be passed on to the commercial loan officer assigned to this account, so that he may review the financial condition of the firm. Given the following financial statements and historical ratios 1. Prepare a statement of retained earnings for the year ended December 31, 2019. (5 points) 2. Calculate Operating Cash Flow (OCF) and Free Cash Flow (FCF) for year 2019 and make your interpretations. (15 points) 3. Prepare a statement of cash flows for the year ended December 31, 2019, organized by cash flow from operating activities, cash flow from investment activities, and cash flow from financing activities. Make your interpretations. (20 points) 4 Calculate the Cosmo, Inc. financial ratios for the most recent year (2019). Analyze its overall financial situation from time-series viewpoint. And also break your analysis into an evaluation of the firm's liquidity, activity. debt, and profitability. Make your interpretations. (30 points) 5. Construct the DuPont system of analysis from 201 Sto 2019 Make your comparison. Interpret your results. (10 points) Using the firm's 2018. and 2019 financial statements, develop the common-size income statements and common-size balance sheets for 2018 and 2019. Make a comparation Which areas require further analysis and investigation? (20 points) Income Statements 2018 2010 Sales Revenue $873.000 $1.013.376 Less: COGS 742 SOO 861 370 GrOSS Profit $131.040 $132.006 Less: Operating Expenses Selling and Adm. Expenses $43.080 $40335 Depreciation SO,000 50.000 Miscellaneous EXP. 17.472 13 201 Total Operating Expenses $111. 152 $105730 Operating Profit $19.888 $40.270 Less Interest Expense 47.280 46.10 Net Profits Before Taxes $27302 5170 Less: Taxes (08) Net Profits After Taxes $10.433) (102 Less: Dividends O O Add to Retained Earnings G516.4351 ($102) EPS (100,000 shares) (O.101 (ESO Historical and Industry Average Ratios Balance Sheets Cosmo, Inc. 2018 2019 2015 ASSETS 2016 2017 2018 Cash and Marketable Securities $28.820 ACCounts Receivable 77.65 00.078 Current Ratio 6.38 3.68 3.56 3.62 Inventos $20.000 S60.000 Total Current ASSets $620.480 $668. 303 2 54 Quick Ratio 2.00 O S7 0 61 Gross Fixed Assets SSOO 000 SSOO OOO Total Debt Ratio 0.47 0.55 0.64 0.65 Less: Accumulated Depreciation 1 SO,000 1.90 Equity Multiplier 2.20 $300.000 2.75 Net Fixed Assets 2.83 $350.000 Total Assets $9 76,480 S968. S03 Times Interest Earned Ratio 1.70 2.06 1.07 0.42 LIABILITIES AND EQUITIES Inventory Turnover ratio 1.92 1.99 1.31 1.43 Notes Payables $148.000 $148.000 190.10 Average Age of Inventory 183.49 Accounts Payable 278.54 255.60 13.995 10. 705 Accruals 9301 11020 Receivables Turnover 60.00 54.58 39.00 11.25 Total Current Liabilities $173.1206 $176,421 Average Collection Period 6.08 6.69 9.36 32.44 Long-term Liabilities $238.000 $447.000 Total Liabilities $631,200 $623.421 Total Asset Turnover 0.94 0.83 0.78 0.89 Common Stock (100,000 shares) $320.000 $320,000 Net Prorit Margin 2.77% 3.49% 0.27% -1.88% Retained Earnings $25,184 $25,082 ROA 2.60% 2.89% 0.21% -1.68% Total Equity $345.184 $45,082 Total Liabilities and Equity So 76.480 S068. S03 ROE 4.94% 6.36% 0.59% -4.76% 2019 0.95 200 000 The credit manager at Bank of New York has just received the income statement and balance sheet for Cosmo. Inc. the year ended December 31.2019. The bank requires the firm to report its earnings performance and financial position quarterly as a condition of a loan agreement. The bank's credit manager must prepare two key financial statements based on the information sent by Cosmo, Inc. This will be passed on to the commercial loan officer assigned to this account, so that he may review the financial condition of the firm. Given the following financial statements and historical ratios 1. Prepare a statement of retained earnings for the year ended December 31, 2019. (5 points) 2. Calculate Operating Cash Flow (OCF) and Free Cash Flow (FCF) for year 2019 and make your interpretations. (15 points) 3. Prepare a statement of cash flows for the year ended December 31, 2019, organized by cash flow from operating activities, cash flow from investment activities, and cash flow from financing activities. Make your interpretations. (20 points) 4 Calculate the Cosmo, Inc. financial ratios for the most recent year (2019). Analyze its overall financial situation from time-series viewpoint. And also break your analysis into an evaluation of the firm's liquidity, activity. debt, and profitability. Make your interpretations. (30 points) 5. Construct the DuPont system of analysis from 201 Sto 2019 Make your comparison. Interpret your results. (10 points) Using the firm's 2018. and 2019 financial statements, develop the common-size income statements and common-size balance sheets for 2018 and 2019. Make a comparation Which areas require further analysis and investigation? (20 points) Income Statements 2018 2010 Sales Revenue $873.000 $1.013.376 Less: COGS 742 SOO 861 370 GrOSS Profit $131.040 $132.006 Less: Operating Expenses Selling and Adm. Expenses $43.080 $40335 Depreciation SO,000 50.000 Miscellaneous EXP. 17.472 13 201 Total Operating Expenses $111. 152 $105730 Operating Profit $19.888 $40.270 Less Interest Expense 47.280 46.10 Net Profits Before Taxes $27302 5170 Less: Taxes (08) Net Profits After Taxes $10.433) (102 Less: Dividends O O Add to Retained Earnings G516.4351 ($102) EPS (100,000 shares) (O.101 (ESO Historical and Industry Average Ratios Balance Sheets Cosmo, Inc. 2018 2019 2015 ASSETS 2016 2017 2018 Cash and Marketable Securities $28.820 ACCounts Receivable 77.65 00.078 Current Ratio 6.38 3.68 3.56 3.62 Inventos $20.000 S60.000 Total Current ASSets $620.480 $668. 303 2 54 Quick Ratio 2.00 O S7 0 61 Gross Fixed Assets SSOO 000 SSOO OOO Total Debt Ratio 0.47 0.55 0.64 0.65 Less: Accumulated Depreciation 1 SO,000 1.90 Equity Multiplier 2.20 $300.000 2.75 Net Fixed Assets 2.83 $350.000 Total Assets $9 76,480 S968. S03 Times Interest Earned Ratio 1.70 2.06 1.07 0.42 LIABILITIES AND EQUITIES Inventory Turnover ratio 1.92 1.99 1.31 1.43 Notes Payables $148.000 $148.000 190.10 Average Age of Inventory 183.49 Accounts Payable 278.54 255.60 13.995 10. 705 Accruals 9301 11020 Receivables Turnover 60.00 54.58 39.00 11.25 Total Current Liabilities $173.1206 $176,421 Average Collection Period 6.08 6.69 9.36 32.44 Long-term Liabilities $238.000 $447.000 Total Liabilities $631,200 $623.421 Total Asset Turnover 0.94 0.83 0.78 0.89 Common Stock (100,000 shares) $320.000 $320,000 Net Prorit Margin 2.77% 3.49% 0.27% -1.88% Retained Earnings $25,184 $25,082 ROA 2.60% 2.89% 0.21% -1.68% Total Equity $345.184 $45,082 Total Liabilities and Equity So 76.480 S068. S03 ROE 4.94% 6.36% 0.59% -4.76% 2019