Question 3 (Total marks for this question = 20)~ Bike-With-Us Corporation, a specialty bicycle parts replacement venture, was started last year by two former professional bicycle riders who had substantial competitive racing experience including competing in the Tour de France. The two entrepreneurs borrowed $50,000 from members of their families and each put up $30,000 in equity capital. Retail space was rented and $60,000 was spent for fixtures and store equipment. Following are the abbreviated income statement and balance sheet information for the Bike-With-Us Corporation after one complete year of operation. BIKE-WITH-US.CORPORATION Sales . $325,000 Operating Costs -285,000T Depreciation- . .. . 10,000T Interest. Taxes.. .Cash + ....$1,0OOT Receivables ....30,000T Inventories ....50,000T Fixed Assets, Net ...:50,000T Payables . .. . 1 1,OOOT Accruals ..:: 10,000T Long-Term.Loan ....50,0009 Common -Equity ..*-60,0009 Required: a) Prepare an income statement and a balance sheet for the Bike-With-Us Corporation using only the information provided above. + (3 marks) b) Calculate the current ratio, quick ratio, and NWC-to-total-assets ratio. (3 marks) c) Calculate the total-debt-to-total-assets ratio, debt-to-equity ratio, and interest coverage. (3 marks)Question 3 cont d) Calculate the net profit margin, sales-to-total-assets ratio, and the return on total assets. (2 marks) e) Calculate the equity multiplier. + ii) Combine this calculation with the calculations in part d) of this question to show the ROE model with its three components. (2 marks) + f) Calculate the operating return on assets. t. (2 marks) + g) Determine the effective interest rate paid on the long-term debt.+ (2 marks) h) i) Calculate the NOPAT margin. ii) Discuss how the NOPAT margin compares with the results for the net profit margin. iii) Did the owners benefit from the use of interest-bearing long-term debt? (Students should write no more than 100 words for this part of the question). (3 marks) +