The 2014 and 2018 year end balance sheet along with the 2019 income statement for Jersey Kids Corporation, a New York Stock Exchange company are show 2019 and 2018 Balance Sheet 2019 2018 Cashi $32,300 $46,900 AR 50,700 58,300 Inventory 70,500 75,800 Net Fixed Assets 504,500 461.000 $658,000 $642.000 Accounts Payable $58,900 $61,200 ST Notes Payable 20,000 30,000 134,700 164,500 Long Term Debt Owners Equity 444,400 386,300 $650,000 $642,000 Note: ST Notes Payable are all due in less than 1 year 2019 Income Statement $642,100 Sales Cost of Goods Sold 409,800 Depreciation 138,400 EBIT Interest Expense $93.900 15,600 Taxable income $78,300 20.200 Taxes Net Income $58.100 Question 2 2. What was the company's operating cash flow in 2019? Between 0 and $50,000 O Between $50,000 and $100,000 Between $100,000 and $150,000 Between $150,000 and $200,000 O Between $200,000 and $250,000 O Greater than $250,000 Question 3 3. An the form od 75.000 houtstanding Assock in the commerShare EPS 100 and the Mart Worth the OP Notes ise the Yes the Question 4 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 The change in net working capital from 2018 to 2019 was $14,000 The current ratio in 2019 is 25x None of the above Question 5 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 O Purchases of fixed assets must have been $181.900 Purchases of fixed assets were $224,600 O Purchases of fixed assets cannot be determined 2019 and 2018 Balance Sheet 2018 2019 Cash $32,300 $46,900 A/R 50,700 58,300 70,500 75,800 Inventory Net Fixed Assets 504,500 461,000 $658,000 $642,000 $58,900 $61,200 20,000 30,000 Accounts Payable 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 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? O No because the EPS is less than $1.00 per share O No because the PM is less than 8% O 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% O Yes because both EPS and PM are above your minimum investment criteria 1. The change in the Accounts Receivable and ST Notes Payable accounts represent: O A source of cash in both cases A use of cash in both cases O A source of cash for Accounts Receivable and a use of cash for Notes Payable A source of cash for Notes Payable and a use of cash for Accounts Receivable O Net working capital of minus $2,400 O Net present value ("NPV")of positive $2,400