Question 2 (12 Marks) The following are the financial statements for Qwerty Inc: Qwerty Inc 2017 Income Statement ($ in millions) Net sales Less: cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable Income Less: Taxes Net income $9,610 6,310 1.370 1.930 630 $1,300 455 $845 Cash Accounts rec. Inventory Total Net fixed assets Qwerty Inc Statement of Financial Position ($ in millions) 2016 2017 $310 $405 Accounts payable 2,640 3,055 Notes payable 3,275 3,850 Total $6,225 $7,310 Long-term debt 10,960 10,670 Common stock Retained earnings $17,185 $17,980 Total liab. & equity 2016 $2,720 100 $2,820 7,875 5,000 1,490 $17,185 2017 $2,570 0 $2,570 8,100 5,250 2,060 $17,980 Total assets Calculate the following for 2017: a) Operating cash flow. b) Change in net working capital. c) Current ratio. d) Quick ratio e) Total asset turnover ratio. 1) Receivables turnover ratio. g) Inventory turnover ratio. h) Debt ratio i) Debt-to-equity ratio i) Profit margin k) Return on Assets 1) Return on Equity