2. Refer to the Example Company balance sheet for the period 2016 to calculate the following: a) Working capital turnover b) Current ratio c) ROE d) ROA 3. A company has current liabilities of $500 million, and its current ratio is 2.0. What is its level of current assets? 4. A company has 10% ROA. Assume that a company's total assets equal total invested capital, and that the company has no debt, so its total invested capital equals total equity. What is the company's ROE? Example Company Balance Sheet December 31, 2016 LIABILITIES ASSETS $5,000 35.900 500 52.100 100 10,000 40.500 31.000 3.500 1 500 80.000 Current Cash Penycash Temporary investments Accounts receivable.net Inventory Supplies Prepaid insurance Total current earts) Investments Property plant equipment Land Land improvements Buildings Equipment Les acom depreciation Prop. plant que Intangible Current la Notes payable Accounts payable Wages payable Interest payable Tas payable Warranty by Uneamed revenues Total current Long-term biti Notes payable Blonde payable Total long-term 2.800 6.100 1.100 1.500 61 000 8.000 20.000 400 000 420.000 5.500 6.500 180.000 201.000 150.000) 337000 Tolle 431.000 105.000 200.000 305.000 Goodwill Trade names Total intangibles Other Tot STOCKHOLDERS' QUITY Common stock 110,000 Retained camning 220.000 Accum other comprehensive income 9.000 Less Treasury wock 50.000) Total stockholders' equity 280.000 Total tabletes Stockholders equly 5.770.000 3000 3.770.000 The notes to the sample balance sheet have been omited Example Corporation Income Statement For the year ended December 31, 2017 $500,000 380,000 120,000 Sales (all on credit) Cost of goods sold Gross profit Operating expenses Selling expenses Administrative expenses Total operating expenses 35,000 45.000 80.000 Operating income Interest expense 40.000 12,000 Income before taxes Income tax expense 28,000 5.000 Net income after taxes $ 23,000