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Please be more detailed, thank you! Company Corporation 2019 Cash 400 Cost of Goods Sold 600 Debt (LT) 5000 Depreciation 300 Dividends 325 Interest Expense

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Company Corporation 2019 Cash 400 Cost of Goods Sold 600 Debt (LT) 5000 Depreciation 300 Dividends 325 Interest Expense 400 Inventories 1500 Investments (ST) 1250 Loans from Bank (ST) 450 Payables 3000 Property, Plant, Equipment 4800 Receivables 600 Research and Development 250 Revenues 6900 Salaries 3000 Sales and Distribution 400 Shareholders' Equity 100 2020 500 700 5300 300 350 450 1800 1350 450 2600 5450 550 250 7350 3000 350 1300 * All values given are in 1000s of dollars. Asset values are net of depreciation. 1) On average, how many times during 2020 did The Company sell its inventory? Based on your answer, and without really knowing anything about The Company's line of business, what impression does your answer give you of the company's efficiency? 2) Compute The Company's profit margin for 2020. In what sense is profit margin a measure of The Company's overall efficiency? 3) Compute NOPAT for The Company for both 2019 and 2020, using answers to Q3 and Q4 on Assignment #1 to do so. 4) Consider the Frooman Ratio, which is NOPAT/ Revenuest. What is the difference in The Company's FR between the two years? Has it changed during the two years? Finally, what family of ratios does the FR belong to? 3. What was net working capital in 2020? If Company Corp. were now to take out a short term bank loan of $1000 to pay off some of it payables, how would that affect its NWC, assuming nothing else changes? Would it be a good idea to do so? NWC = current assetst - current liabilities/2 NWC20 = curr assets20 - curr liabs20 NWC20= 4200 - 3050 = 1150 12 The loans (ST) account would increase, while the payables account would decrease by the same amount. Since both of these are current liabilities, total current liabilities and thus NWC would remain unchanged. From an NWC standpoint, then, there is no good reason why management would take out such a loan. 4. Compute full combined federal and provincial) corporate taxes for Company for both 2019 and 2020. Here are two additional facts about Company Corporation: 1) It has been designated by the Canada Revenue Agency as a small corporation. 2) It is based in Prince Edward Island. As such it pays only 10% federal and 3.5% provincial tax on the first $500,000 it earns, and then pays 15% federal and 16% provincial tax on the remainder. Taxes = (first 500 of EBT)(tax rate on first 500) + (remaining EBT)(tax rate on remainder) Taxes19: (500)(10%+3.5%) + (1450)(15%+16%) = (500)(.135) + (1450)(-31) = 67.50 + 449.50 = 517.00 Taxes2o: (500)(11%+3.5%) + (1800)(15%+16%) = (500)(.135) + (1800)(-31) = 67.50 + 558.00 = 625.50

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