Question 3............... ...... (31 marks) Comparative data for Home Style for the two-year period 2019-2020 are presented below. Income Statement Data 2020 2019 Net Sales 700,000 550,000 Cost of Goods Sold 417,000 320,500 Gross Profit 283,000 229,500 | Operating Expense 188,000 138,500 Operating Income 95,000 91,000 Other Expense (Interest Expense) 7,500 6,000 Earnings Before Income Tax 87500 85,000 Income Taxes 33,000 35,500 Net Income 54,500 49,500 Dividends Paid 24,000 21,500 Net Increase in Retained Earnings 30.500 28.500 Balance Sheet Data Assets Cash Marketable Securities Receivables (net, less allowance of 7500 at 31122020, and 6500 at 1\12020) 2020 15,000 12,500 2019 5,000 10,250 85000 56000 Inventory 65000 45000 Current Assets 177.500 116.750 Land, Buildings, and Equipment (net) Intangible Assets 325,000 10,000 273,500 10,000 Total Assets 512.500 400.250 Liabilities and Stockholders' Equity 2019 Trade Notes and Accounts Payable Wages payable Miscellaneous Current Liabilities 5% Bonds Payable Income tax 2020 50,000 8,500 25,500 150,000 4,000 20,000 7,250 5,500 120,000 3,000 Total Current liability 237.500 155,750 Common Stock, $10 Par Additional Paid-In Capital Retained Earnings Total Liabilities and Stockholders' Equity 50,000 25,000 199,500 512.500 50,000 25,500 169,000 400.250 Market price of stock end-of-each year: Basic Earning Per-share 60 10.9 42 9.9 Required: A. Compute the following ratios for 2020: 1. Net profit margin 2 Total asset turnover 3. Return on assets 4. Account receivable turnover 5. Inventory turnover 6. Current ratio. 7. Payout ratio 8. Return on total equity 9. Debt to total Assets ratio. 10. Degree of financial leverage 11. Price/earnings ratio 12. Dividend yield 13. Acid-Test ratio B.: comment on the following ratios Account receivable turnover Inventory turnover Total asset turnover Current ratio Net profit margin