Answer these questions using the overview (p. 1) and 5 Exhibits

,Answer these questions using the overview (p. 1) and 5 Exhibits (pp. 3 – 9). Write your responsesin a new thread on the board.1. Calculate the following ratios for each year during the period 1980-1983. Comment on thetrend indicated by each ratio with respect to the financial performance and condition of theCharter 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 ratioii. Quick ratiod. Solvencyi. Total liabilities to total equitiesii. Total long-term debt to total long-term debt plus owner’s equity2. The Charter Company had a number of nonrecurring and/or noncash components ofincome from continuing operations in 1983. Beginning with the 1983 earnings fromcontinuing operations, adjust this figure for nonrecurring and/or noncash items (informationfor 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 stockmarket, in the aggregate, anticipated Charter’s problems and priced its common stockaccordingly (see Exhibit 5 (p. 9)).,