Norman Co. Using the financial statements for Norman Co. on the preceding page, calculate the following financ Income Statement statement ratios and indicate what they would be used for (i.e. who would be interested in them): For the Year Ended December 31, 2017 a) Profit margin Sales (all on credit) 6,500,000 Cost of goods sold 3,575,000 Gross Margin 2,925,000 Operating expenses 1,375,000 b) Receivables turnover Earnings before interest and taxes 1,550,000 Interest expense 450,000 Earnings before taxes 1,100,000 Tax expense 440,000 c) Current ratio Net income 660,000 Norman Co. d) Debt to total assets Balance Sheet As at December 31, 2017 Cash 70,000 Accounts receivable 310,000 e) Average collection period Inventory 520,000 Total current assets 900,000 Property, plant and equipment (net) 2,700,000 Total assets 3,600,000 f) Return on equity Accounts payable 230,000 Accrued expenses 90,000 Total current liabilities 320,000 g) Quick ratio Long term loan payable 980,000 Total liabilities 1,300,000 Common stock 900,000 Retained earnings 1,400,000 h) Inventory turnover Total liabilities and shareholders equity 3,600,000 i) Return on assets j) Times interest earned