There are three questions that need to be answered. Discussion Questions Answer these questions using the overview (p. 1) and 5 Exhibits (pp. 3 – 9). Write your responses in a new thread on the board. 1. Calculate the following ratios for each year during the period 1980-1983. Comment on the trend indicated by each ratio with respect to the financial performance and condition of the Charter Company. a. Profitability: Return on average total assets (assume a 46% income tax rate) b. Turnover: i. Accounts receivable (based on average gross trade receivables). ii. Inventory (based on average total inventory). iii. Total assets (based on average total assets). c. Liquidity: i. Current ratio ii. Quick ratio d. Solvency i. Total liabilities to total equities ii. Total long-term debt to total long-term debt plus owner’s equity 2. The Charter Company had a number of nonrecurring and/or noncash components of income from continuing operations in 1983. Beginning with the 1983 earnings from continuing operations, adjust this figure for nonrecurring and/or noncash items (information for these adjustments are included in Exhibit 1 (p. 3), Exhibit 3 (p. 6), and Exhibit 4 (pp. 7 – 8)). 3. Based on the information presented in the case, discuss the extent to which the stock market, in the aggregate, anticipated Charter’s problems and priced its common stock accordingly (see Exhibit 5 (p. 9))