Tenacle Acres Company and Subsidiaries Income Statement for 2018 (000 dollars)
Sales	$94,001
Cost of Goods Sold	46,623
Gross Profit	47,378
Selling and Administrative Expenses	28,685
Depreciation and R&D Expense (both tax deductibles)	5,752
EBIT or Operating Income	12,941
Interest Expense	48
Interest Income	427
Earnings Before Taxes (EBT)	13,320
Income Taxes	4,700
Net Income (NI)	8,620
Earnings per Share	1.72
Tenacle Acres Company and Subsidiaries Balance Sheet as of End of 2018 (000 dollars)
Cash	5,534
Marketable Securities	952
Accounts Receivable (gross)	14,956
Less Allowance for Bad Debts	211
Accounts Receivable (net)	14,745
Inventory	10,733
Prepaid Expenses	3,234
Plant and Equipment (gross) Less: accumulated depreciation Plant and Equipment (net)	57,340 29,080 28,260
Land	1,010
Long-Term Investments	2,503
Total Assets:	66,971
Liabilities
Accounts Payable	3,253
Notes Payable	------
Accrued Expenses	6,821
Bonds Payable	2,389
Stockholders' Equity
Common Stock	8,549
Retained Earnings	45,959
Total Liabilities and Equity	66,971

Please answer the following questions and show work!

5-6. 5-7. Calculate the following profitability ratios for 2018. a. Gross profit margin b. Operating profit margin c. Net profit margin d. Return on assets e. Return on equity Comment on net profit margin and return on assets ratios if the industry average for these two ratios are 5 percent and 14 percent, respectively. Calculate the following liquidity ratios for the end of 2018. a. Current ratio b. Quick ratio Comment on the company's ability to pay off short-term debts. Calculate the following debt ratios for the end of 2018. a. Debt to total assets b. Times interest earned. Would a banker agree to extend a loan to Pinewood? Explain. Calculate the following asset activity ratios for the end of 2018. a. Average collection period b. Inventory turnover c. Total asset turnover. Comment on Pinewood's asset utilization. 5-8. a 5-9