The Sophisticated Touch, Co., a catering company, wants to evaluate its historical financial data over the last five years. The Sophisticated Touch, Co. Ratios \begin{tabular}{|r|r|r|r|r|} \hline 2022 & 2021 & 2020 & 2019 & 2018 \\ \hline Liquidity Rat & & & & \end{tabular} Surrent Ratio Zuick Ratio Efficiency Ra nventory Turnover Ratio Accounts Receivable Turnover Ratio Average Collection Period Fixed Asset Turnover Total Asset Turnover Leverage Rat Total Debt Ratio Long-Term Debt Ratio LTD to Total Capitalization Debt to Equity Long-Term Debt to Equity Coverage Rat Times Interest Earned Cash Coverage Ratio Gross Profit Margin Profitability I Operating Proft Margin Net Proft Margin Return on Total Assets Return on Equity Return on Common Equity Du Pont ROE Market Value of Equity b) Z-Score for Public Firms Z-Score for Private Firms c) \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ The Sophisticated Touch, Co. } \\ \hline & \multicolumn{5}{|c|}{ Economic Profit Calculations } \\ \hline & 2022 & 2021 & 2020 & 2019 & 2018 \\ \hline Tax Rate & & & & & \\ \hline Total Operating Capital & & & & & \\ \hline Afler-tax Cost of Capital & 12% & 12% & 12% & 12% & 12% \\ \hline \end{tabular} Tax Rate NOPAT Total Operating Capital After-tax Cost of Capital \begin{tabular}{|l|l|l|l|l|} \hline 1,500,000 & 1,250,000 & 1,000,000 & 850,000 & 700,000 \\ \hline \end{tabular} Economic Profit a) Set up a ratio worksheet as shown in Exhibit 3-7, calculate all of the ratios tor I he Sopnisticated Touch, Co, and verify the change in 2022 Sophisticated Touch, Co.'s ROE using the Du Pont method (Analysis 4pts ). b) Using the Altman's model for privately held firms and public ones, calculate the Z-score for The Sophisticated Touch, Co. Assume that the market value of equity is $1,500,000;$1,250,000; $1,000,000;$850,000; and $700,000 for the years 2022, 2021, 2020, 2019, and 2018 respectively (Identify and Access Needed Information 4 pts). a) c) Complete \& calculate the economic profits and other related information for these years and compare it to net income. Assume that the WACC is 12% each year (Identify and Access Needed Information 4pts ). d) The staff at The Sophisticated Touch, Co. wants to perform a trend analysis with the data generated in the previous sections of this problem. Create a line chart showing each category of ratios from 2018 to 2022. Make sure to title the chart and label the axes. Also make a line chart of the Altman's model for private and public firms from 2022 to 2018 (Use Information Effectively to Accomplish a Specific Purpose 4 pts)
