11 of 11 BALANCE SHEET DECEMBER 31, 2020 Cash $44,600 Notes payable (short-term) $49,900 Receivables $110,500 Accounts payable 32,200 Less: Allowance 15,000 95,500 Accrued liabilities 5,100 Inventory 171,100 Common stock (par $5) 258,400 Prepaid insurance Land 8,000 Retained earnings 142,700 19,900 Equipment (net) 149,200 $488,300 $488,300 HEADLAND INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue Cost of goods sold Inventory, Jan. 1, 2020 $198,600 Purchases 786,300 Cost of goods available for sale 984,900. $1,405,000 Cost of goods sold Inventory, Jan. 1, 2020 $198,600 Purchases 786,300 Cost of goods available for sale 984,900 Inventory, Dec. 31, 2020 (171,100) Cost of goods sold 813,800 Gross profit on sales Operating expenses Net income 591,200 169,000 $422,200 (a) Your answer is partially correct. Compute the following ratios or relationships of Headland Inc. Assume that the ending account balances are representative unless the information provided indicates differently. (Round answers to 2 decimal places, eg. 1.59 or 45.87%) (1) Current ratio (2) Inventory turnover (3) Accounts receivable turnover 3.66 times times times (4) Earnings per share (5) Profit margin on sales % (6) Return on assets on December 31, 2020 % eTextbook and Media Save for Later Attempts: 2 of 10 used