CMR Company Comparative Balance Sheet on December 31 2020 Assets Taka Cash 20,000 Accounts Receivable 28,000 Merchandise Inventory 25,000 Property, Plant, and Equipment 83,000 Accumulated Depreciation (28,000) Total Assets 128,000 2021 Taka 13,000 14,000 35,000 78,000 (24,000) 116,000 Liabilities and Shareholders' Equity Accounts Payable Income Tax Payable Bonds Payable (Long Term) Total Liabilities Shareholders' Equity Common Share Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity 31,000 5,000 27,000 63,000 23,000 8,000 33,000 64.000 18,000 47,000 65.000 128,000 14,000 38,000 52,000 116,000 Page 2 of 7 CMR Company Income Statement For the year ended December 31, 2020 Sales (All Credit) Tk. 220,000 Less: Cost of Goods Sold 180,000 Gross Profit 40,000 Operating Expenses Selling Expense 14.000 Administrative Expenses 10.000 Depreciation Expense 4,000 28,000 Net Income 12,000 Requirements: a) Calculate the following ratios for 2020. Also compare & comment on CMR company on the basis of these ratios (industry average ratios are given for the interpretation) Ratio Industry Average Inventory Turnover 5 times Current Ratio 2:1 Debt Equity Ratio 4:5 Accounts Receivable Turnover 12 times Return on Equity 16.50% b) Prepare a cash flow statement for 2020 using the following additional information: i) Dividend declared and paid in 2020 were Tk. 3,000; ii) Plant asset purchased for Tk. 5.000 cash during 2020; and. iii) Weighted average number of common shares in 2020 were 9,000