Question VI {16 marks} Given the following information from the current financial statements of Umbrella Corp. Umbrella Corp. Income Statement For the year ended December 31, 2021 Sales (all on credit) Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before taxes Income tax expense Profit $1,450,000 1.050.000 $400,000 265.000 $135,000 5.3.00 $129,700 45.395 $84,305 Umbrella Corp. Balance sheet December 31, 2021 Cash Marketable securities Accounts receivable (net) Prepaid insurance Merchandise inventory Plant Assets (net) Total Assets $28,500 122,000 52,300 5,000 38,000 143.000 $388.800 Accounts payable Interest payable Common shares Retained earnings Total Liabilities and Equity $81,300 2,800 126,200 178.500 $388.800 Required Calculate the ratios listed below the financial statements: a. Current ratio. b. Accounts receivable turnover. Assume the beginning of year accounts receivable balance was $59,500 c. Days' sales uncollected. d. Merchandise turnover. Assume the beginning of year merchandise inventory was $50,200. e. Times interest earned. f. Return on common shareholders' equity. Assume the beginning of year common shares balance was $180,000 and a retained earnings was $128,000. g. Earnings per share (assume Umbrella Corp's average common shares outstanding are 50,000) h. Price-earnings ratio. Assume the company's shares are selling for $26 per share