Foozie Limited increased its sales from $375,000 in 2020 to $450,000 in 2021. Net income and total assets also increased over this period. You have been asked to compare Foozie's financial performance between 2020 and 2021 by calculating various financial ratios, including net profit margin, sales-to-total assets ratio, return on assets, return on equity using an equity multiplier, and current ratio, quick ratio, debt-to-assets ratio, and interest coverage ratio for 2021.

1. The Foozie Limaited successfully increased its "top line" sales from $375,000 in 2020 to
$450,000 in 2021 . Net income also increased as did the venture's total assets. You have been
asked to coupare the financial performance between the two years.
Required: a. Calculate the net profit margin and the sales-to-total assets ratio for Foozie for 2021
using average total assets. Also calculate the retum on total assets in 2021 using average total
assets. (5 marlis) b. Calculate the ratios in the R.OA model for both 2020 and 2021 using year-
end total assets. Comment on any financial ratio differences. (8 marles) c. Expand the 2021 ROA
model discussed in Part A into an ROE model that includes financial leverage as measured by
the equity multiplier. Use average owners" or stockholders" equity in your calculation. (12
marles) d. Expand the 2020 and 2021 ROA model calculations in Part B into ROE models based
on yearend owners" or stockholders" equity amounts. (5 marks) e. Using average balance sheet
account data, calculate the (1) current ratio, (2) quick ratio, (3) total-debt-to-total-assets ratio,
and (4) the interest coverage ratio for 2021. (10 marks)