Question C4 Statements of Financial Position and Income Statement of Bernstein Company are shown below: Bernstein Company Statements of Financial Position 31 December (S in million) 2018 Cash Supplies 5 Accounts receivable 370 Inventory 615 Plant & equipment (net) 1,000 2,000 2017 80 3 312 415 870 1,680 Bernstein Company Income Statement For the year ended 31 December 2018 (S in million) Net sales 3,000 Cost of goods sold (2,000) Gross profit 1,000 Operating expenses (715) Operating profit 285 Interest expense (165) Profit before taxes 120 Income taxes (20%) (24) Net profit 90 96 20 130 15 10 24 30 20 Accounts payable Unearned revenue Tax payable Dividend payable Notes payable (Due in 6 months) Long-term liabilities Ordinary shares ($2.6 par) Retained earnings 70 60 730 130 906 2,000 475 130 840 1,680 Additional Information: (1) The market price of the ordinary shares as at 31 December 2018 is $23 per share. Bernstein Company declared a final cash dividend of $0.6 per share to be paid in February 2019, no interim dividend was declared in 2018. (3) Credit sales totalled 75% of net sales. Required: (a) Calculate the following ratios of the company for 2018. Show your workings. (Round ALL answers to 2 decimal places.) (i) Gross profit rate (in %) (1.5 marks) (ii) Current ratio (1.5 marks) (iii) Quick ratio (1.5 marks) (iv) Earnings per share (in $) (1.5 marks) Question C4 (continued) (v) Dividend yield (in %) (1.5 marks) (vi) Debt ratio (in %) (1.5 marks) (vii) Inventory turnover (1.5 marks) (viii) Accounts receivable turnover (1.5 marks) (b) As the treasurer of Bernstein Company, you are especially concern about the liquidity of the company. Name the relevant ratios listed in part (a) above that you would like to pay attention to. (2 marks)