Suppose that you have decided to invest some money in the stock market. After some research online, you come across the financial statements of Yong Wireless Limited. Before you can make a decision to invest in 440 of 444the company, you will need to calculate some key financial ratios and then analyze them. The statements are presented below. Yong Wireless Limited Consolidated Balance Sheet (in thousands) As at February 28 2019 2018 Assets Cash $835,546 682,666 2,269,845 Short-Term Investments Accounts Receivable Merchandise Inventory Other Current Assets Total Current Assets Long-Term Investment Property, Plant and Equipment Intangible Assets Total Assets $1,550,861 360,614 2,800,115 621,611 479,455 5,812,656 958,248 682,400 371,129 4,841,586 720,635 1,334,648 1,204,503 $8,101,372 1,956,581 1,476,924 $10,204,409 $615,620 1,638,260 95,650 82,247 Liabilities Accounts Payable Accrued Liabilities Income Taxes Payable Other Current Liabilities Total Current Liabilities Long-Term Liabilities Total Liabilities Stockholders' Equity Common Stock Retained Earnings Stockholders' Equity Liabilities and Stockholders' Equity $448,339 1,238,602 361,460 66,950 2,115,351 111,893 2,227,244 2,431,777 169,969 2,601,746 2,208,235 2,113,146 5,489,517 7,602,663 $10,204,409 3,665,893 5,874,128 $8,101,372 Yong Wireless Limited Consolidated Income Statement in thousands) For the Year Ended February 28 2019 2018 Revenue $14,953,224 $11,065,186 Cost of Sales 8,368,958 5,967,888 Gross Profit 6,584,266 5,097,298 Operating Expenses Research and Development 964,841 684,702 Selling, Marketing and Admin 1,907,398 1,495,697 Amortization Expense 310,357 194,803 Litigation Expense 163,800 Total Operating Expenses 3,346,396 2,375,202 Income from Operations 3,237,870 2,722,096 Other Income and Expenses Investment Income 28,640 78,267 Income before Income Tax Expense 3,266,510 2,800,363 Income Tax Expense 809,366 907,747 Net Income $2.457144 $1,892,616 0 Yong Wireless Limited Summary of the Statement of Cash Flows (in thousands) For the Year Ended February 28 2019 2018 Net Cash Provided by Operations $3,034,874 $1,451,845 Net Cash Used by Investing ($1,470,127) ($1,823,523) Net Cash Used by Financing ($849,432) $22,826 Net Increase (Decrease) in Cash $715,315 ($348,852) Required a) Calculate the following ratios for Yong Wireless Limited for 2019 and 2018. For any ratios that require an average (i.e. ROE), use the closing balance for the year. 2019 2018 Gross Profit Margin Net Profit Margin Return on Equity Return on Assets Asset Turnover Current Ratio Quick Ratio Debt-to-Equity Ratio b) Based on the figures you calculated, has the company shown improvement in 2019 over 2018? Would you invest in Yong Wireless Limited? Explain. The following information has been taken from the financial statements of Ivory Inc. Ivory Inc. Current Assets, December 31, 2019 Total Assets, January 1, 2019 Total Assets, December 31, 2019 Current Liabilities, December 31, 2019 Total Liabilities, December 31, 2019 Stockholders' Equity, January 1, 2019 Stockholders' Equity, December 31, 2019 $175,000 500,000 575,000 75,000 175,000 300,000 400,000 Net Sales Depreciation Expense Interest Expense Income Tax Expense Net Income 900,000 10,000 20,000 25,000 40,000 Required a) Given the data for Ivory Inc., calculate the following ratios for 2019 (round to two decimal places). The company's ratios for 2018 are given for comparison. i) ii) iii) iv) v) vi) Ratio Current Ratio Times Interest Earned Ratio Debt-to-Equity Return on Assets Return on Equity Net Profit Margin 2018 3.5 5.40 25.00% 12.50% 20.20% 8.60% Ratio 2019 b) Using 2019 as a comparison, discuss whether the company improved or deteriorated in its ability to (i) pay current liabilities as they come due, (ii) meet its long-term debt obligations and (iii) profitability. Be sure to make reference to specific ratios in your answers