Question 1 (53 marks) Given below are comparative Balance Sheet and an Income Statement for Utpoia Corporation, a company trading ultrasound systems: Utpoia Corporation Balance Sheets 31 December 2018 and 2019 2019 (S) Cash 104,000 Accounts receivable 124,000 Inventory 110,000 Notes receivable (due within 1 year) 40,000 Prepaid rent (will expire in 2 months) 8,000 Equipment (net) 50,000 436,000 2018($) 84,000 78,000 135,000 35,000 11,000 30,000 373,000 Accounts payable Salaries payable Long-term note payable Preferred stock (6% dividend rate) Common stock (12,000 shares outstanding) Retained earnings 74,000 35,000 52,000 20,000 120,000 135,000 436,000 50,000 22,000 52,000 20,000 120,000 109,000 373,000 Utopia Corporation Income Statement For the year ended 31 December 2019 Net sales (75% credit sales) $ 524,000 Cost of goods sold (328,000) Gross profit 196,000 Operating expenses (118,700) EBIT 77,300 Interest expense (9,750) EBT 67,550 Income taxes expense (20,265) Net income 47,285 1 Utopia has declared and paid cash dividends during 2019 to both preferred and common stockholders. Its market price as at 31 December 2019 was $18 per share. 2 Calculate the following ratios in respect of Utopia Corporation for 2019: a. Current ratio b. Quick ratio c. Inventory turnover ratio d. DSO (use 365 days) e. Times-interest-earned ratio f. Profit margin (express in %) g. Total assets turnover ratio h. ROIC (express in %) i. ROE (express in %) j. PE ratio Carry your answers to 2 decimal places. (24 marks)