Q5. Using the information in the Balance Sheet and Profit and Loss Statement below, calculate the following ratios and answer the questions (8 points in total) BARRY'S SUPERSTORE Comparative Year-End Income Statements BARRY'S SUPERSTORE Comparative Year-End Balance Sheets Prior Year Current Year Prior Year Current Year Net Sales Cost of Goods Sold Gross Profit $100,000 50,000 50,000 $120,000 60,000 60,000 Assets: Cash Accounts Receivable Inventory Short-Term Investments Total Current Asstes Equipment Total Assets Rent Expense Depreciation Expense Salaries Expense Utility Expense 5,000 2,500 3,000 1,500 5,500 3,600 5,400 2,500 $90,000 20,000 35,000 15,000 160,000 40,000 $200,000 $110,000 30,000 40,000 20,000 200,000 50.000 $250,000 Operating Income 38,000 43,000 Interest Expense Income Tax Expense Net Income 3,000 5,000 $ 30,000 2.000 6,000 35,000 Liabilities: Accounts Payable Unearned Revenue Total Current Liabilities Notes Payable Total Liabilities $ 60,000 10,000 70,000 40,000 110,000 $ 75,000 25,000 100,000 50,000 150,000 Stockholder Equity Common Stock Ending Retained Earnings Total Stockholder Equity Total Liabilities and Stockholder Equity 75,000 15,000 90,000 $200,000 80,000 20,000 100,000 $250,000 1) Calculate the following Liqudity Ratios Current ratio in prior year = Current ratio in current year = Quick ratio in prior year = Quick ratio in current year = 2) Calculate the following Solvency Ratios Debt to Solvency ratios in prior year = Debt to Solvency ratios in current year = Times interest Earned Ratios in prior year = Times interest Earned Ratios in current year = 2) Calculate the following Profitability Ratios Return on Invested Capital (ROIC) ratio in prior year = Return on Invested Capital (ROIC) ratio in current year = Return on Owner's Equity (ROE) ratio in prior year = Return on Owner's Equity (ROE) ratio in current year = Profit as Percentage of Sales ratio in prior year = Profit as Percentage of Sales ratio in current year = 3) Based on the above ratio analysis, what conclusions/observations can you make regarding the financial situation of this company. (If any)