Question 4 Based on the income statement and balance sheets below, please compute the lists of ratio below:- i) Gross profit margin ii) Operating profit margin iii) Profit before tax margin iv) Profit after tax margin v) Current ratio vi) Quick ratio vii) Times interest earned ration viii) Debt ratio Return on Assets x) Return on Equity ix) Income Statement Sales Cost of good sold Gross Profit Total operating expenses Operating Income Interest expenses Profit before tax Tax expenses Profit after tax 50,000 (12,000) 38,000 (10,000) 28,000 (4,000) 24,000 (6,000) 18,000 Balance Sheet Cash Account receivable Inventory Other current assets Total Current Assets Gross property plant and equipment Accumulated depreciation Net property plant and equipment Long term investment Total Non Current Assets Total Assets 20,000 12,000 10,000 2,000 44,000 50,000 (20,000) 30,000 12,000 42,000 86,000 Liabilities Account payable Short term notes payable Total Current Liability Long term debt Total Liabilities 5000 2500 7500 40500 48000 Shareholder capital Retained earnings Total Equity Total Liabilities and Equity 25000 13000 38000 86000