Below is the 2018 and 2019 Statement of Financial Position and Statement of Income for Meadow Farms Inc.

Dec. 31, 2019 Dec 31, 2018

Cash $300,000 $150,000

Short term investments 900,000 650,000

Accounts receivable 1,000,000 750,000

Inventory 400,000 250,000

2,600,000 1,800,000

Land 400,000 400,000

Building, at cost 900,000 900,000

Building, accumulated depreciation (300,000) (250,000)

1,000,000 1,050,000

Total Assets $3,600,000 $2,850,000

Accounts payable 450,000 350,000 Long-term debt 615,000 300,000

Common shares 1,000 1,000

Retained Earnings 2,534,000 2,199,000

2,535,000 2,200,000

Total Liabilities and Equity $3,600,000 $2,850,000

Sales $4,000,000 $5,700,000

Cost of goods sold 3,000,000 5,000,000

Gross Profit 1,000,000 700,000

Depreciation expense 50,000 75,000

Operating expenses 280,000 290,000

330,000 365,000

Net Income before taxes $670,000 $335,000

Required A

From the data above, calculate the following (two decimal places and show calculations for part marks) A formula sheet is found at the back of the exam:

2019 2018

1. Current Ratio at Dec 31, 2019 and 2018 (2marks) a b______________

2. Debt to equity ratio at Dec 31, 2019 and 2018 (2 marks) c d_______________

3. Gross Profit Percentage at Dec 31, 2019 and 2018 (2 marks) e f______________