2. Mr.Torun Corporation provided the following Statements for 2019-20 - Balance Sheet 2020 2019 Assets $ $ Cash 40,000 70,000 Accounts Receivable 320,000 350,000 Inventory 460,000 320,000 Total Current Asset 820,000 740,000 Gross Fixed Assets 560,000 520,000 Accumulated Depreciation 180,000 150,000 Net Fixed Asset 380,000 370,000 Total Asset 1,200,000 1,110,000 Liabilities & Stockholders' Equity Current Liabilities Accounts Payable Notes Payable Accrued Expense Total Current Liabilities Long Term Debt Total Liabilities Stockholders' Equity Common Stock at par Share Premium Reserve Retained Earnings Total Liabilities & Stockholders' Equity 390,000 110,000 20,000 520,000 320,000 840,000 320,000 90,000 20,000 430,000 350,000 780,000 100,000 150,000 110,000 1,200,000 100,000 150,000 80,000 1,110,000 Income Statement Sales Cogs Gross Profit Operating Expenses Operating Income (EBIT) Interest Earnings before Tax (EBT) Tax (30%) Earnings after Tax (Net Income) 2020 $ 2,200,000 1,420,000 780,000 600,000 180,000 29,000 151,000 45,000 106,000 Additional Information: 1. Purchased equipments paying $40,000 cash. 2. Annual depreciation expense was $30,000. 3. Paid cash dividend of $76,000. 4. No sale of fixed asset. Required a. Prepare a Cash Flow Statement for the year ended June 2020. (12) b. Calculate the following Ratios for the year ended June 2020 and also indicate the significance of each ratio- (18) Current Ratio, Quick Ratio, Accounts Receivable Turnover, Profit Margin, Asset Turnover, ROA, Return on Common Stockholders' Equity, Debt to Asset, Times Interest Earned ratio