Provide the formulas and calculate the financial ratios for this company in 1998. Expected 5 years earnings growth is 7%. (20 marks) Balance Sheet ($ in Millions) Assets 1998 Liabilities and Owners' Equity 1998 Current Assets Current Liabilities Cash Accounts Payable 500 500 Notes Payable Accounts Receivable 200 700 Inventory Total Current Liabilities 1000 1200 Total Current Assets Long-Term Liabilities 1700 Long-Term Debt 900 Fixed Assets Total Long-Term Liabilities 900 Property, Plant, and Equipment 1600 Owners' Equity Less Accumulated Depreciation 300 Common Stock ($1 Par) 500 Net Fixed Assests Capital Surplus 1300 300 Retained Earnings 100 Total Owners Equity 900 Total Assets Total Liab. and Owners' Equity 3000 3000 Income Statement ($ in Millions) 1998 Sales 3800 Cost of Goods Sold 2200 Administrative Expenses 400 Depreciation 579 Earnings Before Interest and Taxes 621 Interest Expense 90 ble Incom 531 es 139 Net Income 392 Dividends 90 Addition to Retained Earnings 302 other Information Number of Shares Outstanding (Milions) 500 Price per Share 7.06 Ratios Formula Answer Liquidity ratios Current ratio Quick ratio Net Working Capital Activity ratios Accounts receivable turnover ratio Inventory turnover Total asset turnover Leverage ratios Debt-equity ratio Equity multiplier Times interest eamed Profitability ratios Net profit margin Return on assets Return on equity Common-stock ratios Price to Earnings ratio P/E ratio) Earnings per share (EPS) PEG ratio Dividends per share (DPS) Dividend payout ratio Dividend yield Book value per share Price-to-book-value