Question 4 (Financial Planning and Ratio Analysis) 25 Marks Consider the following simplified Financial Statement Income statement Sales $32,000 24,400 Cost of sales Net Income 7,600 Balance Sheet $1,000 Cash Accounts Receivables Inventory 5,000 Net Fixed Assets 7,500 Total Assets 15,000 $500 Accounts payables 2,000 Long term debt 2,000 Equity 12,000 Total Liabilities and Equities 15,000 Required: 1) Create a proforma Balance Sheet (Assume a 10% growth rate for assets and liabilities 2) Calculate the following Ratios from the simplified financial statements abovej 2) Profit Margin b) Return on Assets 6) Return on Equity Current Ratio e Quick Ratio