1. Presented below are the income statement and balance sheet of Windsor, Inc Income Statement-2020 Sales $100 Cost of goods sold Gross profit 40 60 9 4 Operating expense Interest expense Taxes Loss on sale of investment 6 1 20 Total expenses Net Income 40 Balance Sheet 2020 2019 Cash $10 $2 Accounts receivable 12 10 Inventory 14 20 5 4 6 10 Prepaid rent Investments Equipment Accumulated depreciation Total assets 20 15 60 55 3 3 10 Accounts Payable Taxes payable Bonds payable Common stock Retained earnings 10 4 30 28 10 13 Total 60 SS CONTINUED Additional information A Sold investment that cost $4 for $3. 1. Average shares of stock outstanding was $10. C Market price of a share of common stock was $20. Required: Prepare a statement of cash flows using the Indirect method for 2020 1 2. Using the information from Problem 1, calculate the following ratios for 2020 A Acid test. Average sales period Average collection period DTimes interest earned E Debt to equity ratio Price earnings ratio G. Return on equity