Assignment Graded You have been asked to assess the financial standing of Pet World, a national pet store operation. Below is information from Pet World's balance sheet and income statement. Use the following information to calculate the following ratios: Current Ratio, Acid Ratio, Cash Ratio, Debt Ratio, Times Interest Earned, Cash Coverage Ratio, Inventory Turnover, Profit Margin Ratio, Return on Assets, Return on Equity, Earnings Per Share, and Price to Earnings Ratio. All work and formulas must be shown. Round to 2 decimal places. ******* Income Statement**** Sales Revenue 18,330,000 Cost of Goods Sold 12,755,000 Gross Profit 5,575,000 Operating Expense: Research and Development 1,400,000 Marketing 750,000 Payroll 2,450,000 Operating Income 975,000 Interest Income 35,000 After you have calculated the ratios, describe the financial health of Pet World in a 3-page report using at least 10 of the ratios as evidence. In the report, explain what your chosen ratio tells you about Pet World's finances and why it is significant in assessing the company's financial health. Present your answers and calculations for all the ratios at the end of the report (these calculations do not count toward the 2 pages for the report). EBIT (Earning before interest & taxes) 1,010,000 Interest expense 75,000 Income before taxes 935,000 Taxes 35% 327,250 Net income from operations 607,750 ********** Balance Sheet**** ASSETS: Current Assets: Cash: 3,372,000 Short term investments 980,000 Net receivables 2,425,000 Inventory: 3,200,000 TOTAL CURRENT ASSETS: 9,977,000 Long term investments 1,500,000 Property, plant, equipment 6,420,000 Goodwill 3,450,000 TOTAL LONG TERM ASSETS 11,370,000 TOTAL ASSETS: 21,347,000 LIABILITIES: Current Liabilities: Accounts Payable: 1,980,750 Short term debt 1,100,000 TOTAL CURRENT LIABILITIES 3,080,750 Long term debt 4,465,000 TOTAL LONG TERM DEBT 4,465,000 TOTAL LIABILITIES: 7,545,750 STOCKHOLDER'S EQUITY: Common Stock 2,200,000 (44,000 shares outstanding at $50 per share) Retained Earnings 11,601,250 TOTAL STOCK EQUITY 13,801,250 TOTAL LIABILITIES