4-28 MARKS A comparative balance sheet for BC. Ltd. is presented as follows: Balance Sheet 2020 2019 Assets Cash 300 400 Accounts receivable 1,070 810 Inventory 1.350 1.380 Equipment 5.150 3.190 Less: Accum. Depreciation (800) (1,000) Accounts payable 810 570 Accrued expense 50 80 Bonds payable (Long-term) 1,600 770 Shareholder's Equity Common shares Retained eamings 3.590 2.500 1.020 860 Income Statement 2020 S 2019 S Revenues Sales 13,330 11,280 Expenses and others Cost of goods sold 9,620 8.550 Other expenses 1,950 1,620 Depreciation expense 180 160 Loss on sale of old equipment 350 0 Net income 1230 950 During 2020, the company sold some of their old equipment. $3.000 of new equipment items were acquired by issuing common shares of $600, and the balance paid with cash Optional table (no marks will be given to this table) Cash Accounts Rec Inventory Equipment Accumulated Dep Accounts Payable Accrued Expenses Bonds Payable Common Shares Retained Eamings 2019 2020 REQUIRED: (a) Use Direct method to prepare in good form the 2020 Statement of Cash Flows for the company (Cash flows from operating activities and investment activities ONLY) (14) Optional table (no marks will be given to this table) Cash Accounts Rec Inventory Equipment Accumulated Dep Accounts Payable Accrued Expenses Bonds Payable Common Shares Retained Eamings 2019 2000 REQUIRED (a) Use Direct method to prepare in good form the 2020 Statement of Cash Flows for the company (Cash flows from operating activities and investment activities) (1) REQUIRED (b) You are the fund manager working for TD Bank who makes decisions on long term investments Based on the above information work out 4 accounting ratios that can best support your decision (12) (1. use the below format) (2. Your selection of ratios in 2020 should be the same as 2019) 2020 2019 2 3. 2 BEND OF EXAM