Question 1-4. Below are the balance sheet and income statement of Philippe company for 2015. PHILIPPE CORPORATION 2014 and 2015 Balance Sheets ($ in millions) 2014 2015 Assets Current assets Cash $ 210 $ 215 Accounts receivable 355 310 Inventory 507 328 Total $1,072 $ 853 Fixed assets Net plant and equipment $6,085 $6,527 PHILIPPE CORPORATION Total assets $7,157 $7,380 2015 Income Statement ($ in millions) Liabilities and Owners' Equity Sales Current liabilities Cost of goods sold Accounts payable $ 298 $ 207 Notes payable Depreciation 1,715 Total $1,922 $1,725 Earnings before interest and taxes Long-term debt $1,987 $2,308 Interest paid Owners' equity Taxable income Common stock and paid-in surplus $1,000 $1,000 Taxes (34%) Retained earnings 2,248 2,347 Net income Total $3,248 $3,347 Dividends $47 Total liabilities and owners' equity $7,157 $7,380 Addition to retained earnings 99 1,427 $4,053 2,780 550 $ 723 502 $ 221 75 $ 146 1. Prepare a common-size income statement of Philippe company. 2. Compute the following financial ratios of Phillipe for 2015. 1) Current ratio = 2) Quick ratio= 3) Total debt ratio = 4) Debt to equity ratio = 5) Return on Equity (ROE) =