Your friend, Abu, has come to you for some assistance in evaluating a company he is considering investing in Abu has provided you with the income statement, balance sheet and statement of cash flows for the year ended December 31, 2021 as well as some industry standards for select ratios Abu knows you have taken a financial accounting course&is hoping you can help him decide whether or not he should invest in the company Required: 1. Calculate 12 ratios to help you analyze the company 2. Review the Statement of Cash Flows for Genie's Carpets and describe 3 strengths or weaknesses. 3. Based on your answers from Part 1 and 2 would you recommend Abu invests in the company. You must discuss at least 4 ratios in providing your answer. SHOW YOUR WORK Industry Gross profit margin ratio Net profit margin ratio Rate of return on assets Earnings per Share Current ratio Dividend Yield 55.00% 7.00% 3% 10.00 180 Page 1 Sales Cost of goods sold Selling expenses Administrative expenses Rent expense GENIE'S CARPETS LIMITED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2021 2021 2020 $ 1385.400 51,115,250 595722 788678 501,860 313.500 251,800 315,800 228,600 29,300 18,000 Depreciation 7400 1,400 655,900 504,400 Income from operations 129778 108.990 Interest expense 5250 1050 Income before tax 124328 107,940 Income tax expense 10.520 Net income 2058485 97,420