Table ! Smith Company Balance Sheet Assets: Cash and marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Fixed assets Less: accumulated depreciation Net fixed assets Total assets $600,000 2,215,000 1,837,500 24.000 $3,586,500 2,700,000 1,087,500 $1,912,500 $5,199.000 Liabilities: Accounts payable $240,000 Notes payable 825.000 Accrued taxes 42.500 Total current liabilities $1,107,000 Long-term debt 1.275.000 Owner's equity (50,000 shares). 2.817.000 Total liabilities and owner's equity $5.199.000 Table 2 Smith Company Income Statement Other Information The common shares are trading in the stock market for $125 each. Net sales (all credit) $6,375,000 Less: Cost of goods sold 4,312,500 Selling and administrative expense 1,387,500 Depreciation expense 135,000 Interest expense 127.000 Earnings before taxes $412,500 Income taxes 225.000 Net income $187.500 Common stock dividends $97,500 Change in retained earnings $90,000 (5 pts) Based on the information in Table 1, the current ratio is: 8. (3) 9. (5 pts) Based on the information in Table 2, the net profit margin is: (3) 10. (5 pts) O What is the P/E ratio? What does a high P/E ratio indicate? | 11. (5 pts) What is the return on equity? Assume that the retained earnings have not been added to the equity account. (3)