PART A (45 marks): The following are from the latest financial statements of Ytrew Limited and its main competitor, both of which are manufacturing firms: Income statement Ytrew Limited Competitor Net sales (all credit) S 2,967,300 $ 36,267,000 Cost of goods sold (2,344,167) (28,650,930) Gross profit 623,133 7,616,070 Operating expenses (356,076) (4,714,710) Operating profit 267,057 2,901,360 Interest expense (76,302) (644,747) Profit before tax 190,755 2,256,613 Tax (30%) (57,227) 676,984) Net profit 133,529 1,579,629 Balance sheet Ytrew Limited Competitor Current assets Cash S 29,673 362,670 Accounts receivable 292,665 3,676,381 Inventories 68,946 868,210 Total current assets 391,284 4,907,261 Fixed assets 707,716 7,181,739 Total Assets 1,099,000 12,089,000 Current liabilities Accounts payable S 59,346 $ 725,340 Accrued expenses 29,673 362,670 Short-term notes payable 89,019 1,088,010 Total current liabilities 178,038 2,176,020 Long-term debt 267,057 3,264,030 Total liabilities 445,095 5,440,050 Shareholders' equity 653,905 6,648,950 Total liabilities and shareholders' equity 1,099,000 12,089,000 Required: a) Calculate the following ratios for Ytrew Limited and its competitor (do not show formulas!): (14 marks) Average collection period Current ratio Debt ratio Equity multiplier Fixed asset turnover Gross profit margin Interest coverage ratio Inventory turnover Net profit margin Operating profit margin Quick ratio Return on assets Return on equity Total asset turnover b) Based on your results from part a), compare and discuss the liquidity and capital structure of the two firms. (16 marks) PART A is continued on the next page. C) Perform a decomposition of operating profitability similar to that carried out in the textbook and compare the (8 marks) determinants of operating profitability for Ytrew and its competitor. Based on your analysis, discuss areas where Ytrew's management might seek improvements in order to match its competitor. d) Perform a DuPont decomposition of return of equity for Ytrew and its competitor and discuss any differences (7 marks) between the two firms