4.1 Task - Financial ratios (Value: 70 points) Instructions: After studying the educational resources assigned in this module related to the analysis of financial statements using indicators, solve the following problems. It is important that you include the procedure and briefly explain how you got the result. Keep in mind that the rubric also includes s criterion to evaluate the correct use of language, grammar, spelling and syntax (4 points). A. Questions (Value: 40 points) 1. It explains how financial indicators related to liquidity. asset management, debt management profitability and market value can support the decision-making of managers, shareholders and commercial banks. (10 points) 2. Explain the effect of the increase in the company's debts on the Return on Assets (ROA) and Return on Equity (ROE) indicators. (Value: 6 points) 3. Argue how asset and inventory turnover analysis can help improve a company's operational performance. (Value: 4 points) 4. Assuming that the fiscal health of the Health Company is not optimal. explain how the Retum on Equity (ROE) can help justify the payment of dividends to shareholders and the increase in the company's debts. (Value: 8 points) 5. If the Liver Corporation has a lower price/earnings (P/E) indicator than another company engaged in the same activity. what reasons could explain these differences? (Value: 4 points) 3. Describes at least three problems that arise in the analysis of financial indicators. (Value: 6 points) 7. Explain how the DuPont equation can help analyze company results. (Value: 4 points) B. Problems (Value: 28 points) 1. If the Baldwin Corporation has $2 million in inventory $5 million in total current assets, and $1.5 million in current liabilities, what will be the Current Ratio and Quick Ratio, assuming the industry average is 4.37 (6 points) 2. Kairos Industries achieved $17 million in sales and $3 million in net income. The value of the assets totaled $6 million, as did the equal sum of liabilities plus principal. The company also paid taxes at 32% and interest at 39%. Determines the Net Profit Margin, Assets Turnover Ratio, ROA, ROE and Return on Invested Capital (RDIC). (10 points 3. Liberty Solutions Inc. has annual sales of $125 million, inventory valued at $35 million and $18 million in accounts receivable. Determine the Inventory Turnover Ratio (ITR) and Days Sales Outstanding (DSO), assuming the industry average is 90 days. (6 points) 4. Renew Company has earnings per share (BPS) of $3.50, a value per share of $35 and a market value of $38. Calculates the price earnings