Accounting, Analysis, and Principles a1 a2, b The following information is taken from the 2020 annual report of Sarasota, Inc Sarasotas fiscal year ends December 31 of each year Sarasotas December 31, 2020, balance sheet is as follows Sarasota, Inc Balance Sheet December 31, 2020 Assets Cash $440 Inventory 1,660 Total current assets 2,100 Plant and equipment 1,900 Accumulated depreciation (152) Total assets 3,848 Liabilities Bonds payable (net of discount) $1,426 Stockholders equity Common stock 1,500 Retained earnings 922 Total liabilities and stockholders equity $3,848 Note X Long Term Debt On January 1, 2019, Sarasota issued bonds with face value of $1,500 and a coupon rate equal to 10 The bonds were issued to yield 12 and mature on January 1, 2024 Additional information concerning 2021 is as follows 1 Sales were $3,200, all for cash 2 Purchases were $2,100, all paid in cash 3 Salaries were $710, all paid in cash 4 Property, plant, and equipment was originally purchased for $1,900 and is depreciated straight line over a 25 year life with no salvage value 5 Ending inventory was $2,100 6 Cash dividends of $110 were declared and paid by Sarasota 7 Ignore taxes 8 The market rate of interest on bonds of similar risk was 12 during all of 2021 9 Interest on the bonds is paid semiannually each June 30 and December 31 Prepare an income statement for the year ending December 31, 2021 Assume semiannual compounding of the bond interest Prepare a balance sheet for Sarasota, Inc at December 31, 2021 Assume semiannual compounding of the bond interest Compute debt to assets ratio and times interest earned ratio for 2020 and 2021 Sarasotas net income in 2020 was $510 and interest expense was $169 (Round answers to 2 decimal places, e g 52 75 ) 2020 2021 Debt to asset ratio Times interest earned ratio Has Sarasotas solvency improved from 2020 to 2021

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Accounting, Analysis, and Principles a1-a2, b The following information is taken from the 2020 annual report of Sarasota, Inc. Sarasotas fiscal year ends December 31

Accounting, Analysis, and Principles a1-a2, b

The following information is taken from the 2020 annual report of Sarasota, Inc. Sarasotas fiscal year ends December 31 of each year. Sarasotas December 31, 2020, balance sheet is as follows.

Sarasota, Inc. Balance Sheet December 31, 2020
Assets
Cash		$440
Inventory		1,660
Total current assets		2,100
Plant and equipment		1,900
Accumulated depreciation		(152)
Total assets		3,848
Liabilities
Bonds payable (net of discount)		$1,426
Stockholders equity
Common stock		1,500
Retained earnings		922
Total liabilities and stockholders equity		$3,848

Note X: Long Term Debt: On January 1, 2019, Sarasota issued bonds with face value of $1,500 and a coupon rate equal to 10%. The bonds were issued to yield 12% and mature on January 1, 2024. Additional information concerning 2021 is as follows.

1.		Sales were $3,200, all for cash.
2.		Purchases were $2,100, all paid in cash.
3.		Salaries were $710, all paid in cash.
4.		Property, plant, and equipment was originally purchased for $1,900 and is depreciated straight-line over a 25-year life with no salvage value.
5.		Ending inventory was $2,100.
6.		Cash dividends of $110 were declared and paid by Sarasota.
7.		Ignore taxes.
8.		The market rate of interest on bonds of similar risk was 12% during all of 2021.
9.		Interest on the bonds is paid semiannually each June 30 and December 31.

Prepare an income statement for the year ending December 31, 2021. Assume semiannual compounding of the bond interest.

Prepare a balance sheet for Sarasota, Inc. at December 31, 2021. Assume semiannual compounding of the bond interest.

Compute debt to assets ratio and times interest earned ratio for 2020 and 2021. Sarasotas net income in 2020 was $510 and interest expense was $169. (Round answers to 2 decimal places, e.g. 52.75.)