Question 1: Prepare the common size Statement of Comprehensive Income for 2019. (5 pts)

Question 2: For 2019, calculate the Cash Flow from Assets, Cash Flow from Creditors, and Cash Flow to Shareholders. Show that the cash flow identity holds. (11 pts)

Question 3: Calculate the dollar change for the following line items from 2018 to 2019, and state whether the change represents a source or use of cash. (3 pts)

Question 4: For 2019, calculate the following ratios and in one sentence, provide an interpretation of the value. (10 pts)

1. Current Ratio
2. Total Asset Turnover
3. Total Debt Ratio
4. Profit Margin
5. Interest Coverage

Question 5: Use the Du Pont Identity to calculate the Return on Equity for 2019 (3 pts)

Use the following financial information to answer question 1 to 5 Assets 2019 Current Assets Cash Accounts Receivables Inventory Total $ $ $ $ ABC CORPORATION Statement of Financial Position as of December 31, 2018 and 2019 ($ in thousands) Liabilities and Owners Equity 2018 2019 2018 Current Liabilities 24,661 $ 20,460 Accounts Payables $ 37,406 $ 11,384 $ 10,121 Notes Payables $ 23,705 $ 23,809 $ 27 583 Total $ 61,111 $ 59,854 $ 58,164 Long term Debt $ 85,000 $ Owners Equity 268,368 $ 296, 101 Common Stock $ 60,000 $ Retained Earnings $ 122,111 $ Total $ 182,111 $ 25,857 11,313 37,170 90,000 Fixed Assets Net PPE $ 70,000 157,095 227,095 Total Assets $ 328,222 $ 354,265 Total Liabilities and OE $ 328,222 $ 354,265 ABC CORPORATION 2019 Statement of Comprehensive Income ($ in thousands) Sales Cost of Goods Sold Depreciation Earning Before Interest and Tax Interest Paid $ 439,780 $ 285,857 $ 35,851 $ 118,072 $ 18,097 $ 99,975 $ 34,991 $ 64,984 Taxable income Taxes (35%) Net Income Dividends Additions to Retained Earnings $ $ 30,000 34,984 Line Item Change Source or Use of Cash Accounts Receivables Retained Earnings Notes Payable