1 Use the financial data as in Balance Sheet and Income Statement tp analyse the following ratios for year 2019 and 2020: a) Current ratios b) Inventory turnover ratios c) Average Collection Period (ACP) @ Day Sales Outstanding ratios (DSO) d) Total assets turnover ratios e) Debt ratios f) Times interest earned ratios g) Gross profit margin ratios h) Net profit margin ratios

Balance sheet As at 31 Dec 2019 and 2020 2019 2020 Current Assets Cash 200 150 Maritable securities 100 125 Accounts receivable 350 325 Inventory 550 625 Total current assets 1200 1200 Plant and Equipment 2200 2500 Less: Accumulated depreciation -1000 1200 Net Plant and Equipment 1200 1400 Total Assets 2400 2525 Labilities Current Liabilities Accounts payable 200 150 Notes payable 100 150 Long term bonds 500 500 Total Labies 800 900 Equity Common stock 900 800 Retained earrings 700 Total equity 1600 1700 Total Liabilities and Equity 2400 2500 Income Statement As at 31 Dec 2020 Sales 1450 Cost of goods sold 850 Gross Margin 600 Operating expenses: Depreciation 200 Salary and wages 30 General and administrative expenses 10 Total Operating expenses 240 Operating Income 360 Interest expenses 60 EBT 300 Taxes (300*40%) 120 Net Income 180