3. Calculate the financial ratios for the company in 2019 and 2020. (2 marks) Note: Purchases were %70 of the cost of goods sold in both years. 2019 2020 Financial Ratios Current ratio Quick ratio Inventory turnover Average age of inventory Average collection period Average payment period Asset turnover Debt ratio Debt to equity ratio Times interest earned ratio Gross profit margin Operating profit margin Net profit margin ROA ROE 4. Analyze the company's overall financial situation from a time series viewpoint. (2 marks) 5. Compile the Pro forma Income statement for the year 2020 using percent of sales method. (1 mark) D E Information for the year 2020 Marketable Securities Accounts Receivable Inventory Number of shares outstanding Other current assets Propert, Plant and equipment Machinery Furniture Vehicles Paid in capital in excess of par value Par value of stock Notes payable Accounts payable Long term loan Short term loan Dividends Cash Accumulated depreciation Sales Depreciation expense Selling expense Cost of goods sold Research and development expense General and administrative expense Interest expense Tax rate Utilities expense Beginning balance of retained earnings 10,000.00 50,000.00 10,000.00 100,000.00 40,000.00 381,000.00 60,000.00 70,000.00 120,000.00 420,000.00 1.00 30,000.00 5,000.00 60,000.00 13,500.00 16,000.00 300,000.00 25,000.00 900,000.00 5,000.00 20,000.00 600,000.00 30,000.00 40,000.00 10,000.00 35% 45,000.00 7 2 B 7 5 2 3 2 7 1 Information for the year 2019 2 Marketable Securities 3 Accounts Receivable 4 Inventory 5 Number of shares outstanding 6 Other current assets 7 Propert, Plant and equipment 8 Machinery 9 Furniture 0 Vehicles 1 Paid in capital in excess of par value -2 Par value of stock 3 Notes payable 4 Accounts payable 5 Long term loan 56 Short term loan 17 Dividends 8 Cash 19 Accumulated depreciation 20 Sales 21 Depreciation expense 22 Selling expense 3 Cost of goods sold 24 Research and development expense 25 General and administrative expense 26 Interest expense 27 Tax rate 28 Utilities expense 29 Beginning balance of retained earnings 0 31 2 20,000.00 60,000.00 30,000.00 120,000.00 10,000.00 400,000.00 80,000.00 15,000.00 100,000.00 600,000.00 1.00 30,000.00 30,000.00 89,000.00 20,000.00 18,900.00 500,000.00 20,000.00 700,000.00 5,000.00 15,000.00 450,000.00 30,000.00 20,000.00 16,000.00 35% 30,000.00 237,800.00