Question 3:......... (31 marks) Comparative data for North Jordan Automotive for the two-year period 2017-2018 are presented below Income Statement Data 2018 Net Sales $1,500,000 Cost of Goods Sold 934.000 Gross Profit $ 566 000 Operating Expense 376.000 Operating Income $ 190,000 Other Expense Interest Expense) 15.000 Earnings Before Income Tax $ 175,000 Income Taxes 66.000 Net Income $ 109,000 Dividends Paid 48.000 Net Increase in Retained Earnings 61000 2017 $1,200,000 741.000 $ 459,000 277.000 $ 182.000 12.000 $ 170.000 71.000 $ 99,000 42.000 57.000 2018 $ 30,000 Balance Sheet Data Assets Cash Marketable Securities Receivables (net, less allowance of $15,000) Inventory 25,000 2017 $ 10.000 20.500 90.000 113.000 130,000 170.000 Current Assets $355.000 5233.500 Land, Buildings, and Equipment (net) Intangible Assets 650.000 20.000 547.000 20.000 Total Assets S1025.000 5800, 500 Liabilities and Stockholders' Equity Trade Notes and Accounts Payable Wages payable Miscellaneous Current Liabilities 5% Bonds Payable Income tax 2018 $ 100,000 17,000 50.000 300,000 8,000 2017 $ 40.000 14.500 11.000 240,000 6,000 Total Current liability $475.000 $311.500 Common Stock, S10 Par Additional Paid-In Capital Retained Earnings Total Liabilities and Stockholders' Equity 100,000 51.000 399.000 $1.025.000 100,000 $1.000 338.000 5800 500 Market price of stock end-of-each year Basic Earning Per-share $81 5109 $68 $9.9 Required: a. Compute the following ratios for 2018 1 Net profit margin Total asset turnover Return on assets Account receivable turnover Inventory turnover Current ratio Payout ratio Return on on total equity Debt to to total Assets ratio. 10. Degree of financial leverage 11. Price learnings ratio 12. Dividend yield 13. Acid-Test ratio b Comment on the First 5 results