Refer to Exhibit 17.14 and calculate Airspace?s liquidity and efficiency ratios for 2020 and 2019 (round answers to two decimal places).

Analysis Component: Identify whether the change in each ratio from 2019 to 2020 was favourable (F) or unfavourable (U) and why.

Exhibit 17.14

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Airspace Technologies Inc. Comparative Balance Sheet Information November 30 Airspace Technologies Inc. Income Statement For Year Ended November 30 (millions of $) (millions of $) 2019 2018 2020 2020 2019 Net sales. Cost of goods sold. Cash. Accounts receivable (net) . $ 68 $ 19 $ 31 $1,340 $1,124 117 55 43 491 419 $ 849 $ 705 199 195 Inventory.. 235 Gross profit. Prepaid rent. 79 43 31 Operating expenses: Depreciation expense Plant and equipment (net). 803 24 790 823 62 62 Accounts payable. 103 60 50 Other expenses. 494 338 127 556 Accrued liabilities. 91 84 Total operating expenses 400 $ 293 $ 305 Income tax payable Profit from operations. 24 12 19 Preferred shares. 127 127 127 Interest expense. 31 21 Common shares 247 247 247 Income tax expense 38 40 Retained earnings. $ 244 $ 224 605 561 603 Profit. %24 Ratio Formula Measure of: Liquldity and Efficlency Current assets Current ratio Current labilitles Current debt-paylng ability Cash + Investments (Current) + Net current recelvables Quick ratio Immedlate current debt-paying ability Current labilities Net sales Accounts recelvable turnover Liquidity and efficlency of collection Average net accounts recelvable Accounts recelvable Days' sales uncollected x 365 Liquidity of recelvables Net sales Cost of goods sold Inventory turnover Liquidity and efficlency of Inventory Average Inventory Ending Inventory Days' sales in Inventory x 365 Cost of goods sold Liquidity of Inventory Net sales (or revenues) Total asset turnover Efficlency of assets in producing sales Average total assets Cost of goods sold Accounts payable turnover Efficiency in paylng trade creditors Average accounts payable Solvency Total liabilities Debt ratio x 100% Creditor financing and leverage Total assets Total equity Equity ratio -x 100% Owner financing Total assets Book value of pledged assets Pledged assets to secured liabilitles Protection to secured creditors Book value of secured liabilities Income before Interest and taxes Times Interest earned Protection in meeting Interest payments Interest expense Profitability Profit Profit margin -x 100% Profit in each sales dollar Net sales (or revenues) Gross profit from sales Net sales Gross profit ratio x 100% Gross profit in each sales dollar Profit Return on total assets x 100% Overall profitability of assets Average total assets Profit – Preferred dividends Return on common shareholders' equity x 100% Profitability of owner's Investment Average common shareholders' equlty Equity applicable to common shares Book value per common share Liquidation at reported amounts Number of common shares outstanding Equity applicable to preferred shares Book value per preferred share = Liquidation at reported amounts Number of preferred shares outstanding Profit - Preferred dividends Earnings per share Profit on each common share Weighted-average common shares outstanding Market Market price per share Earnings per share Price-earnings ratio Market value based on earnings Annual dividends per share Market price per share Dividend yleld -x 100% Cash return to each share