Questions 1 - 5 refer to the problem below: The 2019 and 2018 year end balance sheet along with the 2019 income statement for Jersey Kids Corporation, a New York Stock Exchange company are shown below: 2019 and 2018 Balance Sheet 2019 2018 Cash $32,300 $46,900 AIR 50.700 58,300 70,500 75,800 Inventory Net Fixed Assets 504,500 461,000 $658,000 $642,000 Accounts Payable $58,900 $61,200 30,000 20,000 ST Notes Payable Long Term Debt Owners Equity 134,700 164,500 444,400 386,300 $658,000 $642.000 Note: 'ST Notes Payable are all due in less than 1 year 2019 Income Statement Sales $642,100 Cost of Goods Sold 409,800 Depreciation 138,400 EBIT $93,900 Interest Expense 15,600 Taxable income $78,300 Taxes 20,200 Net Income $58,100 Question 3 1 pts 3. Assume the firm had 75,000 common shares outstanding. As an investor, you would purchase stock in this company if Earnings per Share )"EPS") was at least $1.00 per share and the firm's Profit Margin ("PM") was at least 8%. Will you purchase the stock? No because the EPS is less than $1.00 per share No because the PM is less than 8% No because both the EPS and PM are below your minimum investment criteria Yes because the EPS is greater than $1.00 per share Yes because the PM is greater than 8% Yes because both EPS and PM are above your minimum investment criteria D Question 4 . 1 pts 4. Which statement must be correct regarding the financial statements for Jersey Kids LLC? The company paid dividends of $15,300 in 2019 The financial statements were audited by Ernst & Young In 2019, the return on equity is equal to the return on assets o O The change in net working capital from 2018 to 2019 was $14,000 The current ratio in 2019 is 2.5x None of the above Question 5 1 pts 5. Assume there were no sales of fixed assets during 2019. Which statement about fixed asset purchases must be true? There were no purchases of fixed assets during the period O Purchases of fixed assets must have been $43,500 O Purchases of fixed assets must have been $138,400 Purchases of fixed assets must have been $181,900 Purchases of fixed assets were $224,600 O Purchases of fixed assets cannot be determined