Note : You have the answers of the 10 requirements what is needed is to solve Part B in Word format

The financial statements of Rose Corporation appear below: Rose Corporation Comparative Balance Sheets December 31, 2018 - 19 Assets 2019 2018 $600,000 600,000 1,200,000 1,800,000 S 1,200,000 1,800,000 900,000 2,100,000 9,000,000 $15.000.000 Cash Short-tem investments Accounts receivable (net) Inventory Property, plant and equipment (net) 7,800,000 S12.000.000 Total assets Liabilities and stockholders' equity Accounts payable Short-term notes payable Bonds payable $900,000 2,700,000 4,800,000 $600,000 1,200,000 2,400,000 4,500,000 3,300,000 $12.000.000 4,500,000 2,100,000 $15.000.000 Common stock Retained earnings Total liabilities and stockholders' equity Rose Corporation Income Statement For the Year Ended December 31, 2019 $12,000,000 7,500,000 4,500,000 Net sales Cost of goods sold Gross profit Expenses Operating expenses Interest expense $1,260,000 540,000 Total expenses 1.80.000 2,700,000 810,000 $1,890.000 Income before income taxes Income tax expense Net income Required: (a) Using the financial statements, compute the following ratios for Rose Corporation for 2019. Show all computations. (5 marks) 1. Current ratio. 2. Acid-test ratio 3. Accounts receivable turnover. 4. Inventory turnover 5. Profit margin 6. Return on assets. 7. Assets turnover 8. Times interest earned. 9. Working capital 10. Debt to assets ratio. (b) Based on the ratios calculated in (a), discuss briefly the improvement or lack thereof in financial position and operating results from 2018 to 2019 of Rose Corporation. 3 marks) Answer 1. Current ratio. = Current Assets Current Liabilities600,000 600,000 1,200,000 1,800,000) ( 600,000 1,200,000) 4200000 1800000 2.33 2. Acid-test ratio = Quick Assets C600.000+ 600,000 1,200,000) / 1800000 = _ 2400000/1800000 = 1.33 Sales Avg Receivables = 12,000,000 / (1.200.000+ 3. Accounts receivable turnover. = 900,000) 2 =12,000,000 1050000 11.43 Cost of goods sold / Avg.Inventory 7,500,000 C1800.000 4. Inventory turnover. = 2,100,000) /2 7,500,000 1950000 = 3.85 5. Profit margin. = Net Income Sales 1,890,000 12000000 = 15.75% Net Income Avg Total Assets 6. Return on assets. 1890000 (12000000 = 15,000,000) 2 =1890000 13500000 14% 7. Assets turnover. = Sales / Total Assets 12000000 / 12000000 = 100% - - 8. Times interest earned. Operating Income / Interest Expense =(4.500.000 1,260,000) 540,000 9. Working capital. = Current Assets - Current Liabilities =4200000 - 1800000 2400000 10. Debt to assets ratio. = Total Liabilities / Total Assets = (600000+ 1,200,000 2,400,000) 12000000 - 4200000 12000000 = 35%