On page 186 of our text, you will find financial statements for Salza Technology Corporation. 1. Calculate the following for 2015 and 2016. Given we do not have a balance for 2014, do not calculate any averages from the balance sheet. For example, when calculating the current ratio for 2015, apply this formula: 2015 current assets / 2015 current liabilities). For each ratio below, I included a formula for the 2015 calculations without averages. Use these formulas for both 2015 and 2016. a. Current ratio [2015 current assets / 2015 current liabilities] b. Quick ratio [(2015 current assets - 2015 inventories)/2015 current liabilities] c. Sales-to-total assets [2015 revenue / 2015 total assets) d. Retum-on-assets [2015 net Profit/2015 total assets] e. Retum-on-equity [2015 net Income / 2015 owners' equity] f. Total-debt-to-total-assets [2015 total debt / 2015 total assets) 2. Calculate for 2015 and 2016 a. Gross profit margin [(2015 Net Sales - 2015 COGS)/2015 Net Sales] b. Operating profit margin [2015 EBIT/2015 Net Sales] c. Net profit margin [2015 Net Profit/2015 Net Sales] 3. From your calculations, what observations or suggestions would you make? SALZA TECHNOLOGY CORPORATION ANNUAL INCOME STATEMENTS (IN $ THOUSANDS) 2015 2016 Net sales Less: Cost of goods sold Gross profit Less: Operating expenses Less: Depreciation Less: Interest Income before taxes Less: Income taxes Net income Cash dividends $375 -225 150 -46 -25 -4 75 -20 $ 55 $ 17 $450 -270 180 -46 -30 -4 100 -30 $ 70 $ 20 BALANCE SHEETS AS OF DECEMBER 31 (IN $ THOUSANDS) 2015 2016 $ 16 80 204 Cash Accounts receivable Inventories Total current assets Gross fixed assets Less accumulated depreciation Net fixed assets Total assets Accounts payable Bank loan Accrued liabilities Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity $ 39 50 151 240 200 -95 105 $345 $ 30 20 do 10 60 15 85 185 $345 300 290 -125 165 $465 $ 45 27 23 95 15 120 235 $465