INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER, 2016 Net Sales $ 900,000 Cost of goods sold (550,000 Gross profit 350,000 Operating Expenses (90,000) Earnings before interest and tax (EBIT) 260,000 Interest expense (60,000 Earning before tax 200,000 Tax (359%) 70,000) Earning after tax 130,000 Required: a. Calculate the following ratios: (1) Average payment period. (ii) Average collection period. (iii) Inventory turnover ratio. (iv) Fixed assets turnover. (v) Total assets turnover ratio. (vi) Quick ratio. (vii) Return on Equity (viii) Interest coverage ratio Note: Assume 360 days in a year. b. Assuming that the industrial average for collection and payment period is 110 and 150 days respectively and fixed asset turnover is 40%, evaluate the performance of the Rojert Corporation based on your answer in part (a) above