. US REPUBLIC CORPORATION BALANCE SHEET, DECEMBER 31, 20X3 ASSETS Cash Accounts receivable Inventory Fixed assets, net $ 1,000,000 5,000,000 7,000,000 17,000,000 LIABILITIES AND SHAREHOLDERS' EQUITY Notes payable, bank $ 4,000,000 Accounts payable 2,000,000 Accrued wages and taxes 2,000,000 Long-term debt 12,000,000 Preferred stock 4,000,000 Common stock 2,000,000 Retained earnings 4,000,000 Total liabilities and shareholders' equity $30,000,000 Total assets $30,000,000 US REPUBLIC CORPORATION STATEMENT OF INCOME AND RETAINED EARNINGS, YEAR ENDED DECEMBER 31, 20X3 $16,000,000 4,000,000 $20,000,000 $12,000,000 2,200,000 1,400,000 1,200,000 Net sales Credit Cash Total Cost and Expenses Cost of goods sold Selling, general, and administrative expenses Depreciation Interest Net income before taxes Taxes on income Net income after taxes Less: Dividends on preferred stock Net income available to common shareholders Add: Retained earnings at 1/1/X3 Subtotal Less: Dividends paid on common stock Retained earnings 12/31/X3 $16,800,000 $ 3,200,000 1,200,000 $ 2,000,000 240,000 $ 1,760,000 2,600,000 $ 4,360,000 360,000 $ 4,000,000 a. Fill in the 20x3 column in the table that follows. US REPUBLIC CORPORATION 20X2 20X3 RATIO 1. Current ratio 2. Acid-test ratio 3. Receivable turnover 4. Inventory turnover 5. Long-term debt/total capitalization 6. Gross profit margin 7. Net profit margin 8. Return equity 9. Return on investment 10. Total asset turnover 11. Interest coverage ratio 20X1 250% 100% 5.0x 4.Ox 3596 39% 17% 15% 15% 0.9x 5.5x 200% 90% 4.5x 3.0x 40% 41% 15% 20% 12% 0.8x 4.5x INDUSTRY NORMS 225% 110% 6.0x 4.0x 33% 40% 15% 20% 12% 1.0X 5.0x b. Evaluate the position of the company using information from the table. Cite specific ratio levels and trends as evidence. c. Indicate which ratios would be of most interest to you and what your decision would be in each of the following situations: (i) US Republic wants to buy $500,000 worth of merchandise inventory from you, with payment due in 90 days. (ii) US Republic wants you, a large insurance company, to pay off its note at the bank