Q2. The income statement & balance sheet of Burnaby Mountain Trading Co. are as follows: Income Statement 2017 Sales Cost of Goods Sold $ 7,000,000 5,000,000 $ 2,000,000 Gross Profit Selling and Administrative Expenses 1,700,000 EBIT $ 300,000 50,000 Interest ense Income before Tax $ 250,000 Taxes 100,000 Net Income 5 150,000 Burnaby Mountain Trading Company Comparative Balance Sheets 2017 2016 Cash $ 90,000 $ 80,000 Accounts Receivable 810,000 800,000 Inventory 800,000 720,000 Total Current Assets $ 1,700,000 $ 1,600,000 Fixed Assets 2,600,000 2,400,000 Total Assets $ 4,300,000 $4,000,000 Accounts Payable 500,000 $ 400,000 100,000 100,000 Bank Loans $ Total Current Liabilities 600,000 $ 500,000 400,000 300,000 Long-term Bonds Total Liabilities $ 1,000,000 $ 800,000 500,000 Common Stock (200,000 shares) Retainded Earnings Total Equity 500,000 2,700,000 2,800,000 $ 3,300,000 $3,200,000 Total Liabilities and Equity $ 4,300,000 $4,000,000 Note: The common shares are trading in the stock market for $27 each. Calculate the following ratios for the company: (Please keep in mind that when a ratio involves both income statement and balance sheet numbers, the balance sheet numbers for the beginning and end of the year must be averaged.) (1) ROE for 2017 (ii) ROA for 2017 (iii) Profit margin (return on sales) (iv) Total asset turnover (v) Interest coverage ratio (times-interest-ratio) (vi) Compound leverage ratio (vii) Inventory turnover ratio (viii) The company's average collection period (ACP) (ix) Current ratio for 2017 (x) Quick ratio for 2017 (xi) P/E ratio