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Use the following financial information to answer question 1 to 5 ABC CORPORATION Statement of Financial Position as of December 31, 2018 and 2019 ($

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Use the following financial information to answer question 1 to 5 ABC CORPORATION Statement of Financial Position as of December 31, 2018 and 2019 ($ in thousands) Assets Liabilities and Owners Equity 2018 2019 2018 2019 Current Assets Current Liabilities Cash $ 24,661 $ 20.460 Accounts Payables s 37,4065 25,857 Accounts Receivables S 11,384 $ 10,121 Notes Payables $ 23,705 11,313 Inventory 23.809 27,583 $61.111 s 37.170 Total $ 59,854 58,164 Long term Debt $ 85,000 $ 90,000 Fixed Assets Owners Equity Net PPE $ 268,368 $ 296.101 Common Stock $ 60,000 $ 70,000 Retained Earnings $ 122,111 $ 157095 Total 182.11 $ 227.095 Total Assets $328,222 $ 354,265 Total Liabilities and OE $ 328,2225 354,265 Total ABC CORPORATION 2019 Statement of Comprehensive Income ($ in thousands) Sales $ 439,780 Cost of Goods Sold $ 285,857 Depreciation $ 35,851 Earning Before Interest and Tax $ 118,072 Interest Paid $ 18,097 Taxable income $ 99,975 Taxes (35%) $ 34,991 Net Income $ 64,984 Dividends $ 30,000 Additions to Retained Earnings $ 34,984 Question 1: Prepare the common size Statement of Comprehensive Income for 2019. (5 pts) Question 2: For 2019, calculate the Cash Flow from Assets, Cash Flow from Creditors, and Cash Flow to Shareholders. Show that the cash flow identity holds. (11 pts) Question 3: Calculate the dollar change for the following line items from 2018 to 2019, and state whether the change represents a source or use of cash. (3 pts) Question 3: Calculate the dollar change for the following line items from 2018 to 2019, and state whether the change represents a source or use of cash. (3 pts) Change Source or Use of Cash Line Item Accounts Receivables Retained Earnings Notes Payable Question 4: For 2019, calculate the following ratios and in one sentence, provide an interpretation of the value. (10 pts) i. ii. Current Ratio Total Asset Turnover Total Debt Ratio Profit Margin Interest Coverage iv. v. Question 5: Use the Du Pont Identity to calculate the Return on Equity for 2019 (3 pts)

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