94 Focus Metals Inc. Comparative Balance Sheet Information November 30 (millions of $) 2020 2019 Cash $ 24 $ Accounts receivable (net) 418 264 Inventory 76 69 plant and equipment (net) 2,706 2,790 Accounts payable 302 218 Long-term notes payable* 1,780 2,340 Common shares 380 380 Retained earnings 762 279 *90% of the plant and equipment are secured by long-term notes payable. Focus Metals Inc. Income Statement For Year Ended November 30 (millions of $) 2020 2019 Net sales $ 2,820 $2,022 Cost of goods sold 982 772 Gross profit $ 1,838 $ 1,250 Operating expenses: Depreciation expense 104 $ 104 Other expenses 750 617 Total operating expenses 854 721 Profit from operations 984 $ 529 Interest expense 150 184 Income tax expense 52 56 Profit $ 782 $ 289 $ $ un co tA Required: Calculate Focus Metals solvency ratios for 2019 and 2020. (Round the final answers to 2 decimal places.) 2019 Ratio Debt ratio Equity ratio Pledged assets to secured liabilities Times interest earned 2020 % % % % 1 1 times times Analysis Component Identify whether the change in each ratio from 2019 to 2020 was favourable or unfavourable Favourable Unfavourable Ratio Debt ratio Equity ratio Pledged assets to secured liabilities Times interest eamed