MICRON INDUSTRIES LIMITED Income Statement For the years ended Dec. 31, 2018 and 2019 2018 $000's Sales 900000 Cost of Goods Sold 300000 Gross Profit 600000 600000 Selling and Administrative Expenses 1500 150000 EM Depreciation Expense 54000 Advertising Expenses 18000 Earnings Before Interest and Taxes 378000 late 2000 Interest Expense 3000 Taxable income 375000 Taxation (35%) % 131250 Net Income 243750 Dividends (40%) 97500 Addition to Retained Earnings 146250 Additional Information Share Price 21 Ordinary Shares Outstanding 120000000 2019 $000's 1125000 306600 818400 TECO 156000 57000 57000 21000 584400 3000 581400 203490 377910 151164 226746 27.3 144000000 ASSETS Current Assets Inventories Accounts Receivables Cash and Equivalents 2018 $000's 264000 294000 210900 768900 MICRON INDUSTRIES LIMITED Statement of Financial Position As at Dec. 31, 2018 and 2019 2019 LIABILITIES & EQUITY $000's Current Liabilities 276000 Accounts Payables 330000 Notes Payables 270000 876000 Non-current Liabilities Total Liabilities 690000 Common Stock Retained Earnings 2018 $000's 138000 150900 288900 120000 408900 2019 $000's 114000 132654 246654 90000 336654 Net Fixed Assets 630600 Equity 264000 726600 990600 276000 953346 1229346 Total Equity Total Assets 1399500 1566000 Total Liabilities & Equity 1399500 1566000 Page 1 of 6 Question 1 25 Marks As part of your analysis, you are required to investigate Micron Industries' cash flows and selected ratios. Required: Using the financial statement provided on page 1: (a) Compute the following ratios for Micron Industries for 2018 and 2019: i. Return on Equity using Du Pont Identity ii. Earnings Per Share (EPS) ii. Price/Earning (P/E) Ratio iv. Book Value Per Share v. Market-to-Book Ratio (6 Marks) (2 Marks) (2 Marks) (3 Marks) (2 Marks)