balance sheet

Problem (40 points) Find below the Balance Sheet and the Income Statement of a company. All values are in CAD (Canadian Dollars). Balance Sheet Assets Cash 75 Accounts Receivables 150 Inventory 175 Equipment 1,200 Accumulated Depreciation (100) . Total Assets 1,500 Liabilities and Owners Equity Accounts Payables 600 Long-Term Debt 500 Total Liabilities 1 100 Owner's Equity Common Stock 200 Retained Earnings 200 Total Liabilities and Owners Equity 1,500 H Income Statement Sales (All Credit) Cost of Goods Sold 2,000 Gross Profits (1,200) Marketing and Administration 800 Depreciation 80 Total Operating Expenses 70 Operating Profits 150 (EBIT or Operating Income) 650 Interest Expense Income Before Taxes 50 Taxes 600 Net Income 100 500 Required: Calculate the appropriate financial ratios to answer the following questions. 1. How liquid is a firm? 2. Is management generating adequate operating profits on the firm's assets? 3. How is the firm financing its assets? 4. Is management providing a good return on the capital provided by the shareholder? NO CALCULATION OF MARKET VALUE RATIOS