(Profitability and capltal structure analysis) in the year just ended, Callaway Lighing had sales of $5,000,000 and incurred cost of goods soid equal to $4,500,000. The firm's operating expenses were $130,000 and its increase in retained earnings was $40,000 for the year. There are ourrently 100,000 common stock shares cutstanding and the firm pays a $1.485 dividend per share. The firm has $1,000,000 in intorest bearing debt on which it pays 8.0 percent interest a. Assuming the fem's earnings are tawed at 36 percert conotruct the firm's income statement b. Coiculate the flemis operating profit margin and net profit margn. c. Compule the smes interest eumed raso. What does this rato tel you about Callawsy's ability to pay its interest expense? d. What is the femis return on equity? 2. Astuming the firm's eamings are taeed at 35%, construct the frm's income statement. Complete the income stalement below. (Round so the nearost doliar)