26 A B The financial statements for Linh Do's Sport Shoes Ltd are presented below Income statement for year ended June 30 2020 2019 Sales $53,200 $49,000 Cost of goods sold $27.300 $28.350 Depreciatio eciation expense $3.500 $4,200 Other expenses $7,000 $6.650 Earnings before interest and tax $15.400 Interest expense $2.800 $5.250 Income tax expense $3.850 $1,400 Net income (earnings) $8.750 $3.150 Balance Sheet as at June 30 33 MacBook Pro as at June 30 2020 2019 2010 2018 09 $2.800 $1.680 $1.400 Accounts receivable $8.400 $3.150 53.360 Inventory $5.600 $5.250 $4.340 Equipment (net) $6.300 $4,900 $3.500 Motor vehicles (net) $42.210 $28,000 $25.200 Total assets $65,310 $42.980 $37.800 Accounts payable $6.860 55.250 $4.900 Long-term loan $17.500 $5.250 $4.550 Total liabilities $24.360 $10.500 $9,450 Ordinary shares (issued at $1 each) $28.000 $28.000 $28.000 Retained earnings $12.950 $4.480 5350 Total equity $40.950 $32.480 $28.350 FI 5 4 MacBook Pro GUA B ary shares (issued at $1 each) $28.000 $28.000 Stained earnings $12.950 $4.480 $350 Total equity $40.950 $32.480 $28.350 Total liabilities and equity $65.310 $42.980 $37,800 Required: You have been requested to conduct an analysis of the firm's profitability (Return on assets and Earnings per sharel liquidity (Current ratio and Receivables turnover) and solvency (Debt to equity and Times interest eamed for year 2019 and 2020. After calculating these ratios provide a short discussion on profitability, liquidity and solvency based on the ratios calculated. Edit View Insert Format Tools Table 12pt ParagraphBIUAE MacBook Pro 25 5