Question: Question 2 (35 points) You are provided partial information about a firm's financial statements and financial ratios below Also, choose an accounts payables level between

Question 2 (35 points) You are provided partial information about a firm's financial statements and financial ratios below Also, choose an accounts payables level between $500,000 and $2,000,000. Firm does not have any other current liabilities and does not pay any interest on accounts payables. Assume that firm's long-term debt is perpetual at %10 interest rate Solve the following questions: a)Prepare the balance sheet and income statement with as much detail as possible. b) What is firm's operating cash flow? e) Calculate firm's ROA and ROE. Asset tumover ratio - 2 Inventory turnover ratio 4 Current ratio 1.5 Quick (Acid-test) ratio=1 Cash ratio 0.2 Debt/Equity Ratio 0.5 Long-term Debt-5500,000 Interest rate on debt-10% Depreciation-$350,000 General and administrative expenses-$800,000 Tax rate 50%

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