3 The following are the comparative financial statements for Osmo Corporation for 2020 and 2019: OSMO CORPORATION Comparative Statement of Incomes For Periods Ending October 31 7 8 2020 3,421,866 1,472,906 1,948,960 2019 3,149,705 1,485,322 1,664,383 9 10 sales Revenue (all sales on credit) 11 Cost of Goods Sold (all purchases on credit) 12 Gross Profit 13. Expenses 14 Depreciation 15 Selling and Administrative 16 Interest Expense 17 Total Expenses 18 Net Income (before taxes) 19 Income Taxes 20 Net Income 21 185,713 1,188,564 20,527 1,394,804 554,156 166,247 387,909 184,549 1,236,476 22,049 1,443,074 221,309 66,393 154,916 218 214 205 OSMO CORPORATION Comparative Statement of Financial Positions As at October 31 26 27 50 Current Assets: 31 Cash 32 Marketable Securities 33 Accounts Receivable 34 Inventory 35 Total Current Assets 36 Investments (at cost) 37 Property, plant and equipment 597,416 86,000 185,000 61,000 929,416 55,000 64,908 42,000 165,000 45,000 316,908 65,000 687,909 872,758 187,500 500,409 5,500 1,490,326 180,000 692,758 5,500 1,080,166 Property, Plaftt and Equipment 38 39 Less: Accumulated Depreciation 40 PPE, net 41 Goodwill 42 Total Assets 43 Liabilities and Shareholders' Equity 44 Current Liabilities: 45 Accounts Payable 46 Notes Payable 47 Other Liabilities 48 Total Current Liabilities 49 Non-current Liabilities: 50 Bonds and Notes Payable 51 Total Liabilities 52 Shareholders' Equity 53 Common shares Contributed Surplus 55 Retained Earnings 56 Total Shareholders' Equity 57 Total Liabilities and Shareholders' Equity 125,000 35,000 145,000 305,000 120,000 22,000 135,000 277,000 72,500 377,500 78,250 355,250 54 15,000 55,000 1,042,826 1,112,826 1,490,326 15,000 55,000 654,916 724,916 1,080,166 Required: Calculate the following ratios. Determine if the company is doing better in 2020 compared to 2019 for selected ratios noted below. 2020 2019 Analysis Current Ratio Quick Ratio A Jounts Receivable Turnover Average Collection Period Inventory Turnover Days to sell Inventory Accounts Payable Turnover Accounts Payable Payment Period Gross Profit Margin Percentage Net Profit Margin Return on Assets Return on Equity Critical Thinking: Comment on the financial performance of Osmo Corp. in terms of: a. Liquidity b. Activity Critical Thinking: Comment on the financial performance of Osmo Corp. in terms of: a. Liquidity b. Activity c. Profitability