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Please show work if possible, thank you! You are considering investing in Acme Incorporated. The company has provided you with the balance sheet and income

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You are considering investing in Acme Incorporated. The company has provided you with the balance sheet and income statement for the previous year. The current price of one share of stock is $46.25. Earning per share last year was $1.86. 1. Calculate the requested financial ratios: a. Current ratio b. Debt-to-equity ratio c. Return on sales (use net income AFTER taxes) d. Return on equity (use net income AFTER taxes) e. Earnings per share (use net income AFTER taxes) 2. Would you invest in Acme Incorporated? Why or why not? Statement of Income FY 20XX REVENUES Net Sales Other Income 4,090,970 +104, 227 $4,195,197 Total Revenue COST OF GOODS SOLD $2,673,129 GROSS PROFIT (GROSS MARGIN) $1,522,068 OPERATING EXPENSES $333,300 +306,036 $639.336 Total Selling Expenses Total General Expenses Total Operating Expenses NET INCOME BEFORE TAXES Income Tax Paid (25%) NET INCOME AFTER TAXES $882,732 $220,683 $662,049 Balance Sheet December 31, 20x0X ASSETS Current Assets Cash Marketable Securities Accounts Receivable Notes Receivable Inventories Prepaid Expenses and Other $280,928 514,800 108,694 855,771 218,156 88.237 Current Assets Total Current Assets $2,066,586 Fixed Assets Land Plant and Buildings Equipment 510,000 304,096 218,500 $1,744,701 Total Fixed Assets Other Assets $ 49.930 Goodwill, Net Total Other Assets TOTAL ASSETS $3861 217 UABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable Accrued Expenses and Other $226,977 380,496 Current Liabilities Current Portion of Finance Debt 382579 Total Current Liabilities $990,052 Long-Term Liabilities Notes Payable Bonds Other Long-Term Liabilities Total Long-Term Liabilities $228,772 380,000 29 478 638.250 Total Liabilities $1,628,303 Owner's Equity Common Stock 389,538 (342,196 Shares Outstanding) Retained Earnings Total Owners Equity 1843 377 $2,232.915 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 3.861.212

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