Problem 4 (12 points) Consider the following recent financial statements for the Philadelphia Pretzel Company: 2016 Income Statement Sales COGS EBIT Interest expense Taxable income Taxes Net Income 2,000 500 20 480 192 288 2016 Balance Sheet Cash Accounts receivable Inventory Total current assets 100 70 130 300 Accounts payable Total current liabilities 150 150 Long-term debt Common stock Retained earnings Total 275 100 475 1000 Fixed assets 700 Total 1000 2016 Statement of Cash Flows Operating activities: Net Income Depreciation Change in accounts receivable Change in inventory 70 30 (60)