Question 9: Ratio Analysis (17 marks) Standard Company's year-end balance sheets show the following Balance slh HKS Cash Accounts receivables, net Inventory Prepaid expenses Plant assets, net 2014 2015 2016 36,800 49,200 53,000 4,000 229,500 30,800 88,500 111,500 9,700 255,000277,500 445,00518,000 35,625 62,500 82,500 9,375 Total assets Accounts payable Long term notes payable Common stock, S10 par value Retained earnings Total liabilities & equity 49,250 82,500 162,500 78,250 372,500 75,250128,900 97,500 162,500 162,500 129,100 445,000518,000 102,500 104,750 Income Statemen HKS Sales COGs Other operating expenses Interest expense Income taxes Net Income 2015 2016 530,000672,500 410,225 133,980208,550 11,100 8,525 31,37534,100 344,500 12,300 7,845 Required Please present your answer in a table format with ratios in two decimal places a. Compare the year-end short-term liquidity position of this company at the end of 2016, 2015 and 2014 by computing the following ratios. 1. Current ratio (1.5 marks) 2. Acid -test ratio (1.5 marks) b. For the years ended December 31,2015 and 2016, assume all sales are on credit and then compute the following ratios: Days sales' in accounts receivables (2 marks) 2. Accounts receivable turnover (2 marks) Inventory turnover (2 marks) 3. Evaluate the efliciency and profitability of the company by computing the following for year 2015 and 2016 c. 1. Net profit margin (2 marks) 2. Total asset turnover (2 marks) Compare the long term risk and capital structure positions of the company at the end of 2015 and 2016 by computing the following ratios: 1.Debt to capital ratio (2 marks) 2. Time interest earned ratio (2 marks) d