Question 4 Junk Incorporated reports the following set of financial statements for 2018 and 2019. Required - Using the following information, performa vertical analysis for the income statement and balance sheet for 2018 and 2019: Junk Incorporated Income Statement For the Year Ended December 31, 2019 2019 2018 Sales Revenue Cost of goods sold Gross Margin VU 595.000 S 37800 s 217.000 s 634,000 353,000 281.000 S Operating Expenses Selling and general expenses Interest expense Total expenses Net Income s s $ s 165,000 15,200 180, 200 36 800 203.000 R300 211300 69,700 $ S Aalb caDc 11 Normal AaBbcDc AaBbc AaBbcc 1 No Spaci... Heading 1 Heading 2 Styles Font Paragraph Junkincorporated Biance Sheet December 31, 2019 2019 2018 Assets Cash Accounts Receivable Inventory Prepaid Expenses Total Current Assets uuuuu 75,000 $ 25,000 $ 5,000 $ 12.000 $ 177,000S 95.000 26,000 53,000 10500 184,500 Lone Term Investments Property, plant and equipment, net Total Assets S S S 185,000 362,000 $ S $ 143.000 327.500 29,000 4200 Liabilities Accounts Payable Income Taxes Payable Other liabilities Total Current Liabilities uuuu 22,000 $ 4,000 $ 110,000 $ 136,000 $ 33,200 5 s Long Term Dett Total Liabilities 85.000 118,200 19,900 S 155,900 5 Shareholder Equity Common Shares Retained Earning Total Shareholders Equity Total Liabilities & Shareholder's Equity uuuu 90,000 $ 116, 100 S 206 100 $ 362.000 130.000 79,300 209 300 327.500 80 f s W Using the income statement and balance sheet from Question 4, calculate the following ratios for 2019 Gross Profit Percentage b. Current Ratio C. Quick (acid-test) ratio d Inventory turnover Accounts receivable turnover(use sales revenue for calculation) f. Return on total assets g Debt ratio h. Return on equity