QUESTION 4) (25 pts) Using 2019-2018 financial reports of ABC, a) Calculate the followings for 2019 only: (10 pts - 2 pts each) Return on Asset (ROA) Return on Equity (ROE) Net Profit Ratio Asset Turnover Equity Multiple . . USE THE BELOW FOR (b) and (c) parts of the question. See the industry averages for some of the ratios in the below table. Use the averages specific to your Student ID number. Otherwise, you will not gain any point from (b) and (c) parts of the question. LAST DIGIT OF YOUR STUDENT ID Industry average Industry average Industry average Net Profit Ratio Asset Turnover Equity Multiple 0.12 0.50 2.50 0 to 4 0.14 0.55 2.38 2 or 3 4 or 5 6 or 7 0.11 0.77 2.26 0.10 0.55 2.14 8 or 9 0.08 0.77 2.04 b) What is the industry average for ROA in 2019? Considering the industry average and the ratio you found in (a) what would you suggest company to record an improvement in ROA for the coming years? (75 words, 7.5 pts) c) What is the industry average for ROE in 2019? Considering the industry average and the ratio you found in (a) what would you suggest company to record an improvement in ROE for the coming years? (75 words, 7.5 pts) Course Title: Financial Statement Analysis Course Code: ACT450 5 Page QUESTION 4) (25 pts) Using 2019-2018 financial reports of ABC, a) Calculate the followings for 2019 only: (10 pts - 2 pts each) Return on Asset (ROA) Return on Equity (ROE) Net Profit Ratio Asset Turnover Equity Multiple . . USE THE BELOW FOR (b) and (c) parts of the question. See the industry averages for some of the ratios in the below table. Use the averages specific to your Student ID number. Otherwise, you will not gain any point from (b) and (c) parts of the question. LAST DIGIT OF YOUR STUDENT ID Industry average Industry average Industry average Net Profit Ratio Asset Turnover Equity Multiple 0.12 0.50 2.50 0 to 4 0.14 0.55 2.38 2 or 3 4 or 5 6 or 7 0.11 0.77 2.26 0.10 0.55 2.14 8 or 9 0.08 0.77 2.04 b) What is the industry average for ROA in 2019? Considering the industry average and the ratio you found in (a) what would you suggest company to record an improvement in ROA for the coming years? (75 words, 7.5 pts) c) What is the industry average for ROE in 2019? Considering the industry average and the ratio you found in (a) what would you suggest company to record an improvement in ROE for the coming years? (75 words, 7.5 pts) Course Title: Financial Statement Analysis Course Code: ACT450 5 Page