Q4. Using the information of the attached Balance Sheet and Profit and Loss Statement (Attached as follows), Calculate the following ratios. (The PPt lecture notes (chapter 14) have all the related formula ) (Please show the detailed calculation and problem-solving steps. Any direct answer without detailed problem-solving steps will earn 0 point) (1 Point) 1) Net Working Capital (year 1)= Net working capital (year 2)= 2) Current Ratios in year 1= Current Ratios in year 2= Quick Ratios in year 1 = Quick Ratios in year 2= Acid Test Ratios in year 1= Acid Test Ratios in year 2= 3)Debt to Solvency ratios in year 1= Debt to Solvency ratios in year 2= Times interest Earned Ratios in year 1 = Times interest Earned Ratios in year 2= 4) Inventory turn over ratio in year 1 = Inventory turn over ratio in year 2= 5) The account receivable turnover ratio in year 1 and year 2. (If Credit sale is 10% of the total sales) The account payable turnover ratio in year 1 and year 2. (if Credit sale is 25% of the goods purchased) 6) Return on invested capital ratio in year 1= Return on invested capital ratio in year 2- Q4. Using the information of the attached Balance Sheet and Profit and Loss Statement (Attached as follows), Calculate the following ratios. (The PPt lecture notes (chapter 14) have all the related formula ) (Please show the detailed calculation and problem-solving steps. Any direct answer without detailed problem-solving steps will earn 0 point) (1 Point) 1) Net Working Capital (year 1)= Net working capital (year 2)= 2) Current Ratios in year 1= Current Ratios in year 2= Quick Ratios in year 1 = Quick Ratios in year 2= Acid Test Ratios in year 1= Acid Test Ratios in year 2= 3)Debt to Solvency ratios in year 1= Debt to Solvency ratios in year 2= Times interest Earned Ratios in year 1 = Times interest Earned Ratios in year 2= 4) Inventory turn over ratio in year 1 = Inventory turn over ratio in year 2 5) The account receivable turnover ratio in year 1 and year 2. (If Credit sale is 10% of the total sales) The account payable turnover ratio in year 1 and year 2. (If Credit sale is 25% of the goods purchased) 6) Return on invested capital ratio in year 1= Return on invested capital ratio in year 2- ontent/T/Assignment%2011%20Summer_2020.pdf Return on owner's equity ratio in year 1 Return on owner's equity ratio in year 2= Profit as a percentage of sales ratio in year 1= Profit as a percentage of sales ratio in year 2= (Please see the balance sheet and P&L statement on the next page!) Comparative Balance Sheet AgBiz Corporation Account December 31. Year! Assets December 31 Year 2 Percent Difference Difference $ $ 49,000 5.000 151,000 $205.000 17.000 30,000 127.000 $ 174.000 $ -32.000 +25.000 -24,000 5.-31.000 500.0 -15.9 Current assets Cash Accounts receivable Inventories Total current assets Fixed assets: Land Buildings and equipment Less Depreciation Total fixed assets Other investments: Cash value of Me Insurance Investment in other firms Investment in subsidiary Toulocher Tocal assets 250,000 500,000 - 150,000 600.000 250.000 660,000 -170.000 740.000 0 +160.000 -20.000 $+140.000 +32.0 -133 +233 +200 0 6,400 6.600 24.400 24.400 75,000 75.000 105,800 106.000 $910.800 S!.020,000 Libiles and Owners' Equity $ 20,000 $ 53.000 1,500 1.750 -3.1 00 0.0 +0.2 -12.0 +200 $+109,200 $ 33.000 -250 20,000 41.500 35,200 89.950 -15.200 48450 -760 Current abilities: Accounts payable Taxes payable Installment on long-term debe due this year Total current liabilities Long-term liabilities Long-term notes payable Totalles Owners Capital sock Retained earning. January Nec income for year Retained earning December Tocals and 301.600 $343.100 320.050 $410.000 -1989 390,500 30.500 177.200 42.100 $ 610.000 0.0 -20.4 30.000 5567.700 30.000 -12.300 5910.000 $1,020.000 5+109.200 -120 Figure 14-2 Comparative Profit-and-Loss Statement Comparative Profit-and-Loss Statement AgBiz Corporation Year! $1,250,000 Percent of Sales 100.0 Year 2 $1.465.000 Percent of Sales 100.0 Difference 5+215,000 Percent Difference +17.2 100,000 +1,077,000 1,177,000 -151.000 1,026,000 224.000 151.000 +1.105.000 1.256,000 - 127,000 1.129,000 336,000 +51,000 +28.000 +79.000 -24,000 +103.000 +1 12.000 +51.0 +2.6 +6.7 -159 10.0 50.0 82.1 17.9 77.1 22.9 Revenue from sales Less: Cost of goods sold Inventory-Jan. 1 + Goods purchased Goods available for sale Inventory-Dec. 31 Cost of goods sold Gross margin Less: Operating expenses Salaries and wages Office expenses Selling and promotion Utilities and fuel Interest expenses Depreciation Total operating expenses Income before taxes Less: Allowance for income taxes Net income (to retained earnings) 9.6 0.2 4.9 3.0 0.3 -2400 +895 48.7 +250 100,000 1.000 38,000 30.000 4,000 15,000 $ 188,000 36,000 6,000 $ 30.000 8.0 0.1 3.0 24 0.3 1.2 15.0 2.9 0.5 24 140,000 3.400 72.000 44,600 5,000 20.000 $ 285.000 51.000 8,700 $ 42.300 +40,000 *2.400 +34.000 +14,600 1.000 *5.000 $97.000 +15.000 +2.700 $ 12.100 -516 195 3.5 0.6 2.9 45.0