Alberta Playground Inc. produces, markets, distributes, and installs durable playground equipment. It is a new, growing playground distributor in Canada, and is hoping to expand to other provinces shortly. Its head office is in Edmonton, Alberta, and its 2020 and 2019 balance sheets and income statements follow. Alberta Playground Inc. Assets Current assets Balance Sheet (5000) Years Ended March 31 2020 2019 Cash and cash equivalents Receivables Inventories Prepaid expenses and other assets Non-strategic investment Other current assets Total current assets Portfolio investment Property, Plant, & Equipment Goodwill Trademarks and other intangibles. Other assets Total assets Liabilities Current liabilities Bank loans $ 79,191 $ 56,519. 462,507 368,769 666,444 571,004 51,450 30,004 28,083 33,433 340 28,752 $1,321,108 $1,055,388 41,343 1,095,150 1,106,756 854,630 723,495 344,138 321,713 140,743 96,216 $3,755,769 $3,344,911 $172,289 $ 63,272 Accounts payable and accrued liabilities Income taxes payable 576,329 200,338 473,656 151,077 8.979 Bank loans Accounts payable and accrued liabilities Income taxes payable Current portion of long term debt Total current liabilities Non-Current Liabilities Long-term debt Other liabilities Total liabilities Equity Common shares. Total equity Retained earnings Total liabilities and equity $ 172,289 5 63,272 576,329 473,656 200,338 28,539 151,077 8,979 $ 977,495 $ 696,984 381,880 384,190 190,683 155,069 $1,550,058 $1,236,243 $634,675 $ 601,749 1,571,036 1,506,919 $2,205,711 $2,108,668 $3,755,769 $3,344,911 Revenues Alberta Playground Inc. Income Statement (5000) Years Ended March 31 Cost of sales, selling and administrative expenses Depreciation and amortization expense Operating profit Interest on long-term debt Other expenses Earnings before income taxes Income taxes Profit 2020 2019 $6,195,470 $5,980,582 5,269,330 5,152,511 109,082 817,058 117,756 23,721 710,315 30,411 15,963 6,861 777,374 673,043 205,215 169,289 $572,159 $ 503,754 Required: 1. Prepare a common-size balance sheet and income statement on a comparative basis for 2019 and 2020 (Round the final percentage answers to 2 decimal places. Negative answers should be indicated by a minus sign.) ALBERTA PLAYGROUND INC. Common-Size Comparative Balance Sheet As at March 31, 2020 and March 31, 2019 Assets Current assets Cash and cash equivalents Receivables Inventories Prepaid expenses and other assets Non-strategic investment Other current assets Total current assets Portfolio investment Property, plant and equipment Goodwill Trademarks and other intangibles Other assets Total assets 2020 2019 (%) (%) Total current assets Portfolio investment Property, plant and equipment Goodwill Trademarks and other intangibles Other assets Total assets Liabilities Current liabilities - Bank loans Accounts payable and accrued liabilities Income taxes payable Current portion of long-term debt Total current babilities Long-term debt Other liabilities Total liabilities Equity Common shares Retained earnings Total equity Total liabilities and equity Check my work ALBERTA PLAYGROUND INC. Common-Size Comparative Income Statement Years ended March 31, 2020 and March 31, 2019 Revenues Cost of sales and selling, general and administrative Depreciation and amortization expense Operating profit Interest on long-term debt Other expenses Profit before income taxes Income taxes Profit 2020 2019 (%) (%) 2. Calculate the 2020 ratios for Alberta Playground Inc. Including a comparison against the industry averages. (Round the final answers to 2 decimal places.) Ratio Industry Average Favourable or Unfavourable Current ratio 1 161 Total asset turnover times 2.3 times Debt ratio % 35% Equity ratio % 65 % Times interest earned times 50 times Profit margin. 96 14 % Return on total assets % 20 % Earnings per share S 1.79