Question 1 (25 points]: You are given the income statement and balance sheet of the Icebox Company for year 2016. Balance sheet ($) 2016 Income statement ($) 2016 Cash 125,000 Sales 1,500,000 Accounts receivable Cost of goods sold Gross Profit 1,200,000 300,000 Inventory 275,000 325,000 725,000 Current Assets 100,000 Operating expenses Operating profit Fixed assets (net) 420,000 200,000 Total Assets 1,145,000 Interest expense 72,000 Earnings before tax 150,000 128,000 Accounts payable Notes payable Income tax 51,200 225,000 100,000 Accrued liabilities Net income 76,800 Current Liabilities 475,000 Long-term debt 400,000 Total Liabilities 875,000 Equity Total liabilities and equity 270,000 1,145,000 a. Using the provided income statement and balance sheet of Icebox Company for 2016, complete the financial ratio calculations for 2016 (write your answers in the corresponding cells) (Show your calculation like A/B-C or (A+B)/C=D etc.). [13 points-1 point each] Industry Median (2016) Financial Ratios 2014 2015 2016 4.2 3.9 4.5 Inventory turnover (times) Fixed asset turnover (times) 3.2 3.33 3 1.4 1.35 1.37 25% 23% 22.50% Total asset turnover (times) Gross profit margin Operating profit margin Net profit margin ROA 12.50% 12.70% 12.50% 6.10% 6% 6.50% 8.54% 8.10% 8.91% ROE 20.91% 20.74% 22.28% Current ratio 1.71 1.65 1.7 Quick ratio 0.92 0.89 0.95 Average collection period 60 days 65 days 60 days 59.20% Debt-to-Asset ratio 61% 60% Times interest earned 4.2 3.7 4.75 b. Assess icebox Company based on its activity ratios. Comment on year-to-wear changes. Discuss whether the company is managing its assets efficiently compared to industry median values, [3 points) c. Assess Icebox Company based on its profitability, Comment on year-to-wear changes, Evaluate company based on its profitability compared to industry median values, Is the company managing its operating expenses more efficiently compared to industry competitors? [3 points) d. Assess icebox Company based on its short-term solvency. Comment on year-to-wear changes, Evaluate company based on its short-term solvency compared to industry median values, (3 points) e. Assess Icebex Company based on its long-term solvency. Comment on year-to-wear changes, Evaluate company based on its long-term solvency.compared to industry median values, [3 points)