ignment ... * @ @ @ 1 | 3 | 4 0 0 75% 5 critical thinking exercise 17-4 CALCULATING FINANCIAL RATIOS (ADVANCED) You are considering investing in Acme Incorporated. The company has provided you with the balance sheet and income statement for the previous year. The current price of one share of stock is $46.25. Earning per share last year was $1.86. 1. Calculate the requested financial ratios: a. Current ratio B. Debt-to-equity ratio c. Return on sales (use net income AFTER taxes) d. Return on equity (use net income AFTER taxes) e. Earnings per share (use net income AFTER taxes) 2. Would you invest in Acme Incorporated? Why or why not? ACME INCORPORATED STATEMENT OF INCOME FY 2018 REVENUES Nef Sales Other Income Total Revenue $4,090,970 +104,227 $4,195,197 COST OF GOODS SOLD $2.673 129 GROSS PROFIT (GROSS MARGIN) $1,522,068 OPERATING EXPENSES Total Selling Expenses Total General Expenses Total Operating Expenses NET INCOME BEFORE TAXES Income Tax Paid (25%) NET INCOME AFTER TAXES $333,300 + 306,036 $639,336 $882,732 $220.683 $662,049 ACHE INCORPORATED BALANCE LT Dober 31, 200X ADGETS Current AG Made Securit Acount Recable Notes Robe menterer Prepaid Exports and Other une apote Toted Current Asal $200.900 814,500 10R BRA 34.771 216.106 20. -Feed As- Land Plankand Buildings Equipment Total Food Assets $510.000 304,096 218,500 $1,744,701 Other Assets Goodwill Net Total Other Assets 849830 $.49.820 $3.291.217 TOTAL ASSETS LIABILITIES AND STOCKHOLDERS' EQUITY Current Umbilis Accounts Payable $226,977 Accrued Expenses and Other 380,496 Current Liabilities Current Portion of Finance Debt 382.579 Total Current Liabilities 5990,062 Long-Term Liabilities Notes Payable Bonds Other Long-Term Ljabilities Toss Long-Term Liabides $228,772 380,000 473 638.250 $1,628,303 Total Liabilities $ 389,538 Owner's Equity Common Stock (342,185 Shares Outstanding) Rotared Earnings Total One Equity 1.843371 $2,282.915 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 53.861.217