Clipboard F D E H G L 1 K M Exercise Bradford Company Comparative Income Statement 2020 $ Sales Revenue 62.000 Cost of Goods Sold 40,000 Gross Profit 22.000 Operating Expenses: Selling, General & Admin Expenses 6,000 Depreciation 9,345 Operating Income 6,655 Interest Expense 1,500 Income tax expense 1.225 Net Income 3,930 2021 $ 66,000 41.000 25,000 7,500 6,000 11,500 1.375 1.200 8,925 Bradford Company Comparative Balance Sheet Assets Current Assets Assets Cash 35,000 45,000 Accounts Recek 12,000 9,000 Inventory 25,000 35,000 Total current as 72,000 89,000 Property Plant and Equipment: Plant and equip 55,000 50.000 Land 50,000 50,000 Total Assets 177,000 189,000 Liabilities Current Liabilities: Accounts payat 40,000 42,000 Accrued liabiliti 15,000 19,000 Notes payable 18,000 22.000 Total current lid 73,000 83,000 Long term liabil 36,000 46,000 Total liabilities 109,000 129,000 Stockholder's Equity common stock 25,000 24,000 Retained earnin 43,000 36,000 Total Stockhold 68,000 60,000 Total Liabilities 177,000 189,000 Sheet1 Type here to search o 21 fo 2 XI 47 48 a. 49 b. 50 C 51 52 53 54 55 56 57 58 59 60 Requirements: Convert the 2020 and 2021 Income statements to common size (10 marks) Present the Gross Profit and Return on Net Sales for both years and comment on your analysis. (5 marks) Compute the following ratios for 2021: (15 marks) i Current Ratio li Accounts Receivable turnover and Days in each cycle ili Inventory Turnover and Days in each Cycle Iv Debt Ratio V. Based on the above ratios, comment on the firm's ability to manage its liquidity as well as its debt position