Question C[AR2: 8 Marks] The financial statements of Star Corporation appear below; Star Corporation Comparative Balance Sheets December 31, 2018 - 19 Assets Cash Short-term investments Accounts receivable inet) Inventory Property, plant and equipment inet) Total assets 2019 S50,000 50,000 100,000 150,000 175,000 650.000 SL000.000 2018 S 100,000 150,000 75,000 750,000 S1.250.000) $ 75,000 225,000 Liabilities and stockholders' equity Acerunts payable Short-term notcs payable Bonds payable CELIN stock Retained earnings Total liabilities and stockholders' equily 400.000 $ 50.000 100,000 200,000 375.000 275,000 $1,000,000 $1.250.000 375.000 175,000 Star Corporation Income Statement For the Year Ended December 31, 2019 $1.000.000 625.000 375,000 Net sales Cost of goods sold Gross profit Expenses Operating expenses Interest expense Total expenses Income before income taxes Income tax expense Net income $105.00 45.000 150.000 225.000 67.500 $ 157,500 Required: (a) Csing the financial statements, compute the following ralios for Star Corporation for 2019. Show all compulations. (4 marks) 1. Current ratio. 2. Acid-test ratio. 3. Accounts receivable turnover. 4. Inventory turnover. 5. Profit margin. 6. Return on assets. 7. Assels turnover. 8. Times interest earnext. 9. Working capital. 10. Dcbt to asscts ratio. (b) Prepare a vertical analysis of the 2019 income statement data for Star Corporation. (2 marks) (c) Based on the ratios calculated in (a), and the vertical analysis in (b), discuss briefly the improvement or lack thereof in financial position and operating results from 2018 to 2019 of Star Corporation, (2 marks)