Question C1 (20 marks) The following were the income statements and balance sheets of International Trading Limited for 2019 and 2020. The corporate tax rate was 16.5% for the two years. International Trading Limited's Income Statement (all figures in thousands) 2020 2019 Sales $900,000 $800,000 COGS $360,000 $360,000 Other Expenses $135,000 $120,000 Depreciation $90,000 $96,000 Interest $45,000 $56,000 International Trading Limited's Balance Sheet (all figures in thousands) 2020 2019 Cash $60,000 $100,000 Accounts Receivable $240,000 $150,000 Inventory $300,000 $250,000 Fixed Assets $600,000 $500,000 Total Assets $1,200,000 $1,000,000 Accounts Payable $240,000 $200,000 Long-Term Debt $360,000 $400,000 Common Equity $600,000 $400,000 Cl(a) Present International Trading Limited's 2019 & 2020 income statement and balance sheet in the common-size format. What is the usefulness of this format? (8 marks) C1(b) What were the 2019 & 2020 Profit Margin? Any improvement over the period? (8 marks) C1(c) How can a company, such as International Trading Limited, increase its Return on Assets (ROA) and its Return on Equity (ROE)? (4 marks) Question C1 (20 marks) The following were the income statements and balance sheets of International Trading Limited for 2019 and 2020. The corporate tax rate was 16.5% for the two years. International Trading Limited's Income Statement (all figures in thousands) 2020 2019 Sales $900,000 $800,000 COGS $360,000 $360,000 Other Expenses $135,000 $120,000 Depreciation $90,000 $96,000 Interest $45,000 $56,000 International Trading Limited's Balance Sheet (all figures in thousands) 2020 2019 Cash $60,000 $100,000 Accounts Receivable $240,000 $150,000 Inventory $300,000 $250,000 Fixed Assets $600,000 $500,000 Total Assets $1,200,000 $1,000,000 Accounts Payable $240,000 $200,000 Long-Term Debt $360,000 $400,000 Common Equity $600,000 $400,000 Cl(a) Present International Trading Limited's 2019 & 2020 income statement and balance sheet in the common-size format. What is the usefulness of this format? (8 marks) C1(b) What were the 2019 & 2020 Profit Margin? Any improvement over the period? (8 marks) C1(c) How can a company, such as International Trading Limited, increase its Return on Assets (ROA) and its Return on Equity (ROE)? (4 marks)