1. Financial statement Analysis 50 points NDENEHAM INC accounting Information 2020 Debit Credit 2019 Credit Debit 12,000.00 16,000.00 16,000.00 28,500.00 120,000.00 60,000.00 495,000.00 48,000.00 Accounts payable Accounts Receivable Accumulated Depreciation Medical Equipment Capital Stock (Common Stock outstanding) Cash Dividends Income Tax Payable Inventory Marketable security Medical Equipment Notes Payable Office Supplies Prepaid Rent Retained Earnings Unearned Medical Fees TOTAL 284,000.00 541,00.00 886,000.00 750,000.00 650,000.00 287200.00 21,000,00 12.800.00 17,700.00 168,000.00 167,000,00 886,000.00 217.000.00 344.000.00 32.500.00 65,000.00 273,250.00 168.180.00 448,750.00 386.820.00 1,833,800.00 1,642,700.00 1,642,700.00 52,300.00 40,000.00 1,833,800.00 2020 Cost of Goods Sold Income Taxes Operating Expenses Income tax as percentage of Net Sales 2019 445,000 61,000 102,000 220,000 48,000 78,000 8% 10% Other information 1. Marketable securities are sold within two months. 2. The outstanding Common Stocks for 2020 and 2019 were 72,000 and 64,000 respectively 3. The Company Common Stock market price is $18.00 4. The Note payable is due in 24 months 5. The Company uses 360 days as the days in a year, Do not computer retained earnings rather use the retained earnings provided Compute: Round up to two decimal places. 1. Quick Ratio for 2020 2. The net sale for 2020 3. Working Capital for 2020 4. The Gross Profit in dollars and as a percentage of net sales for 2020 5. Debt ratio for 2020 6. Retum on asset 2020 7. The 2020 component percentage/Common size for Medical Equipment, uncared Revenue and Net Income 8. Trend percentage: Inventory, Office Supplies and Retained Earnings 9. Price Equity Ratio (PE Ratio) 10. Average number of days to convert Inventory to cash in 2020 2. Cash Flows 50 points The financial statements of MOUTHFUL Corporation provide the following information for the current year 2020: End of Beginning of Year Year Cash ???????? 670,300 Accounts Receivable 900,000 800,000 Interest Receivable 80,000 100,000 Inventory 170,000 145,000 Short-term Prepayments 75,000 105,000 Accounts Payable (for Merchandise 95,000 120,000 Interest Payable 82,000 48,000 Accrued operating expenses payable 50,800 55,800 Accrued Income taxes Payable 47,500 44,200 Net sale 930,000 Interest Revenue 88,200 Cost of goods sold 580,700 Operating expenses (Including depreciation of $65,000) "195,400 Interest expense 35,300 Income taxes expense 77,500 March 2 Issued capital stock in exchange for $630,000 with cash receipt of $200,000.00 and $430,000 was appraised for the Building given to the company in exchange for ownership in the company, March 8 Purchased office equipment on account for $145,400 June 11 Declared and paid cash Dividend of 45,000.00 Dec 23 Paid $100,00.00 for the office equipment Dec 31 The company sold an old equipment for $130,600.00 in cash. The equipment was purchased on 12/31/2016 for $530,000 with a useful life of 6 years and a residual value of $50,000.00. Mouthful uses the straight line depreciation method. Question: 1. Use the information above to prepare the statement of Cash flow for the year 2020 using the direct method 2. Compute the gain or loss on sales of the equipment