OG Corporation's balance sheet and income statement is listed below. Balance Sheet This Year Last Year Cash 50,000 40,000 Accounts receivable 80,000 60,000 Inventories 180,000 110,000 Plant & equipment 300,000 260,000 Less accumulated depreciation -40,000 -20,000 Total assets 570,000 450,000 Accounts payable 100,000 150,000 Accrued liabilities 70,000 50,000 Mortgage payable Common stock 80,000 130,000 90,000 Retained earnings Total liabilities and equity Income Statement 190,000 160,000 570,000 450,000 This Year Last Year Net Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Profit before taxes 680,000 600,000 410,000 330,000 270,000 270,000 190,000 192,000 80,000 78,000 7,000 2,000 73,000 76,000 22,000 22.800 51,000 53,200 Taxes Net income Other data: Cash dividends paid this year were $21,000. The change in accumulated depreciation account is the depreciation for the year.. Answer the following five questions pertaining to the OG Corporation and be specific. 1. Prepare a common size vertical analysis of OG's balance sheet in good form. Round percentages to one decimal place. 2. 3. Prepare a common size vertical analysis of OG's income statement and reconcile the retained earnings account. Round percentages to one decimal place. Prepare the current year statement of cash flows for OG Corporation using the indirect method and reconcile the cash account. (5 points) 4. Based on the financial statements prepared in questions (1) and (2), calculate the efficiency ratios, liquidity ratios, leverage ratios, and profitability ratios for OG Corporation for this year. Where data is available, also calculate ratios for last year. Use a 360-day year. All sales are on credit to business customers. Assume an income tax rate of 30 percent. (7 points) Based upon your answers to parts (1) through (4) would you provide a credit line to this company? Support your decision by refere 1