The sophisticated Touch, Co., a catering company, wants to evaluate its historical financial data over the last five years. The Sophisticated Touch, Co. Income Statement For the Year Ended Dec 31, 2017 2017 2016 2015 2014 Sales 5,775,000 5,658,000 5,308,500 4,906,000 4,605,000 Cost of Goods Sols 4,875,000 4,793,000 4.393,500 4,056,000 3,702,000 Gross Profit 900,000 865,000 915,000 as,000 903,000 330,300 329,000 317.000 313,000 288,000 Selling Expenses Gen. and Admin Expenses Fred Expenses 194,000 174,600 157.140 141,426 127,283 100,000 100,000 100,000 100,000 100,000 Depreciation Denise 27,000 23.000 20,000 17,000 15,000 FAIT 248,700 238,400 320,860 278,574 372,717 85,000 80,000 75,000 75.000 70,000 Interest Expense Farnings Before Tones 161,700 158,400 245,460 201,574 302,717 Tanes 65,480 63,360 $6,051 61,072 90,815 Net Income 9.2.20 95,040 159,809 10,502 211.902 Notes Tax Rate 40% 40% 35 SON LON The Sophisticated Touch, Co. Balance Sheet As of Dec. 31, 2017 Assets 2017 2016 2015 2012 2013 2012 123,000 108.000 SL500 7 000 67.500 54.000 Cash and Equivalents Accounts Receivable 350,000 380.000 320,000 100.000 270,000 250,000 Us og United States 580,000 672.000 1,127,000 976,500 857,000 Totol Current Assets 753,000 485,250 672.000 589,500 770,250 430,500 380,250 593,125 462,000 379,750 290,625 224,250 190.625 Land and building Machinery and Equipment Furniture and fixtures 86.100 117,900 154,050 76,050 97,050 134,400 123,240 107,520 60,840 94,320 77,640 68,880 Vebides 107,835 94,080 82,530 67935 Other Fixed Assets 60,270 53,235 549,000 420,000 486,000 355,500 258,000 Accumulated Depreciation 318,000 503,000 Net Fixed Assets 1,199,500 984,000 552.000 663,000 844,000 2,326,500 Total Assets 1,960,500 1,700,000 1,416,000 1 224,000 1,083,000 262,500 234,000 204,000 183,000 153,000 135,000 110,000 100,000 70,000 80,000 90,000 70,000 Ljabilities and Owners' Equity Accounts Payable Shon-term Notes Payable Other Current Liabilities Total Current Liabilities Long-term Debt 210,000 180,000 159,000 133 500 115,500 1 96,000 582,500 $14,000 433,000 396,500 358,500 301,000 715,000 S51.000 510,500 352.000 301,500 285,500 Total Liabilities 1,297,500 1.065.000 943,500 748,500 660.000 586,500 Common Stock 460,000 414,000 346,000 309,000 254,000 222,000 Pain in capital 343,000 298,500 252,500 222,500 188,000 165,500 Retained Earning 226,000 183,000 159.000 136,000 122,000 109,000 Total Shareholder's Equity 1.029.000 895,500 757.500 667,500 564,000 496 500 Total Liabilities and Owners' Equity 2,326,500 1.960,500 1,701,000 1,416,000 1.224.000 1,083,000 Set up a ratio worksheet similar to Exhibit 3-6, page 92, and calculate all of the ratios for The Sophisticated Touch, Co. Verify the change in 2017 Sophisticated Touch, Co.'s ROE using the Du Pont method. The sophisticated Touch, Co., a catering company, wants to evaluate its historical financial data over the last five years. The Sophisticated Touch, Co. Income Statement For the Year Ended Dec 31, 2017 2017 2016 2015 2014 Sales 5,775,000 5,658,000 5,308,500 4,906,000 4,605,000 Cost of Goods Sols 4,875,000 4,793,000 4.393,500 4,056,000 3,702,000 Gross Profit 900,000 865,000 915,000 as,000 903,000 330,300 329,000 317.000 313,000 288,000 Selling Expenses Gen. and Admin Expenses Fred Expenses 194,000 174,600 157.140 141,426 127,283 100,000 100,000 100,000 100,000 100,000 Depreciation Denise 27,000 23.000 20,000 17,000 15,000 FAIT 248,700 238,400 320,860 278,574 372,717 85,000 80,000 75,000 75.000 70,000 Interest Expense Farnings Before Tones 161,700 158,400 245,460 201,574 302,717 Tanes 65,480 63,360 $6,051 61,072 90,815 Net Income 9.2.20 95,040 159,809 10,502 211.902 Notes Tax Rate 40% 40% 35 SON LON The Sophisticated Touch, Co. Balance Sheet As of Dec. 31, 2017 Assets 2017 2016 2015 2012 2013 2012 123,000 108.000 SL500 7 000 67.500 54.000 Cash and Equivalents Accounts Receivable 350,000 380.000 320,000 100.000 270,000 250,000 Us og United States 580,000 672.000 1,127,000 976,500 857,000 Totol Current Assets 753,000 485,250 672.000 589,500 770,250 430,500 380,250 593,125 462,000 379,750 290,625 224,250 190.625 Land and building Machinery and Equipment Furniture and fixtures 86.100 117,900 154,050 76,050 97,050 134,400 123,240 107,520 60,840 94,320 77,640 68,880 Vebides 107,835 94,080 82,530 67935 Other Fixed Assets 60,270 53,235 549,000 420,000 486,000 355,500 258,000 Accumulated Depreciation 318,000 503,000 Net Fixed Assets 1,199,500 984,000 552.000 663,000 844,000 2,326,500 Total Assets 1,960,500 1,700,000 1,416,000 1 224,000 1,083,000 262,500 234,000 204,000 183,000 153,000 135,000 110,000 100,000 70,000 80,000 90,000 70,000 Ljabilities and Owners' Equity Accounts Payable Shon-term Notes Payable Other Current Liabilities Total Current Liabilities Long-term Debt 210,000 180,000 159,000 133 500 115,500 1 96,000 582,500 $14,000 433,000 396,500 358,500 301,000 715,000 S51.000 510,500 352.000 301,500 285,500 Total Liabilities 1,297,500 1.065.000 943,500 748,500 660.000 586,500 Common Stock 460,000 414,000 346,000 309,000 254,000 222,000 Pain in capital 343,000 298,500 252,500 222,500 188,000 165,500 Retained Earning 226,000 183,000 159.000 136,000 122,000 109,000 Total Shareholder's Equity 1.029.000 895,500 757.500 667,500 564,000 496 500 Total Liabilities and Owners' Equity 2,326,500 1.960,500 1,701,000 1,416,000 1.224.000 1,083,000 Set up a ratio worksheet similar to Exhibit 3-6, page 92, and calculate all of the ratios for The Sophisticated Touch, Co. Verify the change in 2017 Sophisticated Touch, Co.'s ROE using the Du Pont method