Question 5 (7 marks)

You are working as the finance manager for Inghams Ltd. The following data is available for the company as of 31 June 2021:

Inventory	$206,250
Interest expense	$5,000
Cash	$180,000
Net sales (all credit)	$1,500,000
Accounts receivable	$225,000
Operating expenses	$325,000
Cost of goods sold	$937,500
Accounts payable	$168,750
Prepaid insurance	$80,000
Long term liabilities	$125,000
Accrued wages	$65,000
Income taxes	35%
Fixed Assets	$340,000

Required:

1. Build an income statement for the company? (3 marks)

2. Calculate the total equity and ROE of the company? (2 marks)

3. Calculate the total asset turnover of the company (1 mark)

4. Calculate inventory turnover of the company, given beginning and ending inventory is the same? (1 mark)