Use the financial statements below for problems 4 to 7 Balance Sheet Assets 2019 2020 Cash $14,000 $9,282 Short-term investments. 48,600 18,000 Accounts receivable 351,200 632,160 Inventories 710,200 1,287,360 Total current assets $1,124,000 $1,946,802 Gross fixed assets 491,000 1,202,950 Less: accumulated depreciation 146,200 263,160 Net fixed assets $344,800 $939,790 Total assets $1,468,800 $2,886,592 Liabilities and equity 2019 2020 Accounts payable $145,600 $324,000 Notes payable 200,000 720,000 Accruals 136,000 284,960 Total current liabilities $481,600 $1,328,960 Long-term debt 323,432 1,000,000 Common stock (100,000 shares) 460,000 460,000 Retained earnings 203,768 97,632 Total equity $663,768 $557,632 Total liabilities and equity $1,468,800 $2,886,592 Income Statement 2019 2020 Sales $5,432,000 $6,834,400 Cost of goods sold 2,864,000 4,200,000 Other expenses 340,000 720,000 Depreciation 18,900 116,960 Total operating costs $3,222,900 $5,036,960 EBIT $2,209,100 $1,797,440 Interest expense 62,500 176,000 Pretax earnings $2,146,600 $1,621,440 Taxes (40%) 858,640 648,576 Net income $1,287,960 $972,864 4. Construct a common size income statement 2019 and 2020. Comment on any of the changes in the composition of the income statement. 5. Construct a common size balance sheets for 2019 and 2020. Comment on any changes in the percentages of assets and liabilities. 6. Compute the following using the data from 2020 except where noted: A. Current ratio B. Quick ratio C. Net working capital D. Inventory turnover E. Receivables turnover F. Total asset turnover G. Debt/Equity ratio H. Net profit margin 1. Return on assets J. Return on equity 7. Use the DuPont equation to decompose return on equity for 2020