Question 04 (10 Points) The condensed financial statements of Arohi Ltd for the years ended June 30, 2017 and 2016 are presented below. Balance Sheets June 30 2017 2016 2016 579040 Assets Current Assets Cash and cash equivalents Accounts Receivable ((net) Inventory Prepaid Expense Total Current Assets Invenstments Property plant and Equipment Intangible and other assets Total Assets 58330 87660 71830 20440 238260 18230 69420 71160 66490 65350 26920 229920 1260 64700 84930 380810 Income Statements For the Year Ended June 30 2017 Sales Revenue 648630 Cost and Expense Cost of Goods Sold 171740 Selling & Admin Exp 409260 Interest Expesne 1840 Total Costs & Expense 582840 Income before Income Taxes 65790 Income tax Expense 29130 Net Income 36660 147630 367900 2710 518240 60800 23260 37540 87670 413580 Liabilities and Equity Current Liabilities Long-Term Liabilities Stockholders equity - Common 161770 75950 175860 132200 73710 174900 Compute and comment on following ratios for 2017 & 2016 (a) Current ratio. 6) Inventory turnover (Inventory on 6/30/15 was 61000) Return on assets (Assets on 6/30/15 were 334990 (d) Return on common stockholders' equity (Equity on 6/30/15 was 178590) (e) Debt to assets ratio. (1) Times interest earned Comment on the perforamce of the company over these Total Liability and stockholders Equity 413580 380810 two years