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(14 marks (First Question: the following financial statements for SWEET RAMADAN CO. for 2020. Income statement For year ended 31/12/2020 2020 2019 Sales (70% credit)

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(14 marks (First Question: the following financial statements for SWEET RAMADAN CO. for 2020. Income statement For year ended 31/12/2020 2020 2019 Sales (70% credit) 200000160000 Cost of Goods Sold (110000)|(80000 Gross Profit 90000 80000 rating expenses (36000) | 20000 ABIT 54000 60000 Interest Expense (4000) (4000) Warnings Before Taxes 50000 36000 Haxes a 40% (20000)|(22400) Ner Income 30000 33600 Statement of financial position As of 31/12/2020 2020 2019 cash and Equivalents 15000 10000 Accounts Receivable 35000 25000 Inventory 20000 30000 Total Cuent Assets 70000 65000 Wroperty, Plant & Equipment net) 70000 65000 pral Issey 140000 130000 tal Current Liabilities 40000 35000 Long-term Debt 58000 60000 pral Liabilities 98000 95000 Common Stock Doors 4130000 30000 Treasury shares state si pataw (3000) (3000) Retained Earnings 15000 8000 tal Shareholder's Equity 42000 35000 Thral Liabilities and Owner's Equity 140000 130000 Additional information from (s) corporation and from industry: Depreciation expense for 2020 is $ 9200 Dividends is trum Current ratio of industry is 1.9 Collection period for competitors is 90 days. Market's sales in 2019 is S 400000 Days to sell inventory in industry is 80 days. Market sales in 2020 is 5600000 Industry Debt ratio 60% analysis SMART-QUARATINE (SQ) co. for 2020 in details calculations, comments, expectations and conclusions): 1. Analyze the following items horizontally: sales, inventory, cost of goods sold. Analyze the following items vertically: sales, inventory, cost of goods sold 2 3. Analyze the company' liquidity position and solvency position (all ratios) - comment after each ratio, then put your report about the company's liquidity position. 4. Discuss the company's ability to generate profits, its competitiveness in the market, and its ability to pay its debts. 5. Give one example can the management adopt to enhance its current ratio

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