You have just been hired as a loan officer at Westmount Bank. Your supenlsor has given you a file contalning a request from Hill Company. a manufacturer of computer components, for a $2,000,000 five year loan. Financlal statement data on the company for the past two years are glven below: Pat Smlth, who just three years ago was appointed president of Hill Company. admits that the company has been Inconsistent In Its performance over the past several years. But Smith argues that the company has its costs under control and Is now experlencing strong sales qrowth, as evidenced bv the more than 25% Increase in sales over the past vear. Smith also arques that Investors have recocnized the Pat Smlth, whojust three years agowas appointed president of Hill Company, admits that the company has been Inconsistent in its performance over the past several years. But Smith argues that the company has its costs under control and Is now experlencing strong sales growth, as evidenced by the more than 25% Increase in sales over the past year. Smith also argues that Investors have recognized the Improving situation at Hill Company. as shown by the jump in the price of its common shares from $17 per share last year to $29 per share thls year. Smlth belleves that with strong leadership and with the modernized equipment that the $2,000,000 loan will permlt the company to buy. profits will be even stronger in the future. Anxlous to impress your supervisor, you declde to generate all the information you can about the company. You determine that the following ratlos are typlcal of companles in Hill Company's industry: Requlred: 1. You decide to assess the rate of return that the company Is generating first. a. Compute the return on total assets for both thls year and last year. (Total assets at the beginning of last year were $3.260,000.) (Round your answers to 1 decimel plece.l b. Compute the return on common shareholders' equlty for both this year and last year. (Shareholders' equity at the beginning of last year totalled $2,357,000. There has been no change in preferred or common shares over the past two years.) (Round your answers to 1dec (mal plece.| c- I Is the company's financlal leverage positive or negatlve? c-2. This part of the question is not part of your Connect assignment. 2. You decide to assess how well the company Is doing from the perspective of the common shareholders next. For both this year and last year. compute a. The earnings per share. (Round your answers to 2 decimal pleces.| b. The dividend yleld ratio for common shares. (Round your Intermedlete cakuletions and finel enswers to 1decimal plece.) c. The dividend payout ratio for common shares. (Round your Intermedlete cakuletions and flnal enswers to 1decimal plece.) d-t. The price earnings ratio. (Round your Intermedlete cakuletions and flnel enswers to 1 decimel plece.l e-t. The book value per common share. (Round your answers to 2 declmel pleces.) e-2. This part of the question is not part of your Connect assignment. f. The gross margin percentage. (Round your answers to 1decimel plece.) 3. You declde, finally, to assess credltor ratlos to determine both short-term and longterm debt-paying abillty. For both thls year and last year. compute: a. Working capltal. b. The current ratio. (Round your answers to 2 decimal pleces.| c. The acld-test ratlo. (Round your answers, to 2 decimal pleces.)