Lots to Gain Corporation Ratios Income Statement for 2018 Sales Cost of Goods Sold Depreciation Other operating expenses Earnings before Interest and Taxes Interest Paid Earnings before Taxes Taxes Net Income $8,000 4,000 8001 300 2,9001 50 2,8501 599 $2.251) Quick Ratio Current Ratio Net Working Capital / Total Assets Account Receivables Turnover Inventory Turnover Debt/equity ratio Profit Margin Total Asset Turnover Equity Multiplier Peers 1.69 2.11 0.18 15.00 14.00 0.28 0.27 2.17 1.14 Dividends Paid Addition to Retained Earnings $2001 $2,051 Cash Accounts Receivable Inventory Total Current Assets Fixed Assests 400 Balance Sheet for 2018 and 2017 2018 2017 40 170 Accounts Payable 800 1,200 Notes Payable 400 Total Current Liabilities 1,2401 1,770 Long Term Debt 3,2861 1,620 Common Stock Paid-in-surplus Retained Earnings 4,5261 3,390 Total Liab.& Equity 2018 350 300 650 500 500 355 $2,521 4,526 2017 800 465 1,265 800 500 355 470 3,390 Total Assets 7. You are offered a 20-year annuity of $20,000 annual payments. However, the annuity begins in 3 years (you will not receive any payments for three years, but will then receive $20,000 at the end of each year for 20 years with the first payment arriving exactly 4 years from today). If the discount rate is 4 percent per year (compounded annually), what is the current value of the annuity? (10 points)