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(10 marks) Question 3: Alpha company has the following comparative balance sheet data: Alpha Company Balance Sheets December 31 2020 Cash 20,000 Accounts receivable (net)

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(10 marks) Question 3: Alpha company has the following comparative balance sheet data: Alpha Company Balance Sheets December 31 2020 Cash 20,000 Accounts receivable (net) 70,000 Inventory 60,000 Plant assets (Net) 2,00,000 3,50,000 2019 40,000 50,000 65,000 1,65,000 3,20,000 Accounts payable 53,000 62,000 Mortgage payable (6%) 102,000 98,000 Common stock, 10 per 1,45,000 1,20,000 Retained earnings 50,000 40,000 3,50,000 3,20,000 Additional information for 2020: 1. Net income was 45,000 2. Sales on account were 450,000. Sales returns and allowances were 350,000 3. Cost of goods sold was 218,000. Requirements: Compute the following ratios at December 31, 2020 (a) Current Ratio (b) Inventory Turnover Ratio (c) Debt to Equity Ratio (d) Profit Margin (e) Return on Assets

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