Comparative financial statement data of Zubar Optical Mart follow: ES (Click on the icon to view the income statements.) (Click on the icon to view the balance sheets.) Other information: 1. Market price of Zubar common shares: $54.00 at December 31, 2020; and $40.77 at December 31, 2019 2. Average common shares outstanding: 20,000 during 2020 and 19,000 during 2019 3. All sales on credit Requirements Balance sheets Requirement 1. Compute the ratios for 2020 and 2019. (Abbreviations used: Avg. = average and ofs = outstanding, shs - shares.) a. Current ratio Select the formula, and then enter the amounts to calculate the current ratio for 2020 and 2019. (Round the ratios to two decimal places, X.XX.) Zubar Optical Mart Comparative Balance Sheet December 31, 2020, and 2019 Current ratio 2020 1 2020 2019 2018" 2019 1 Income statements Current assets: Cash 5 44,000 $48.000 Requirements Current receivables, net 216,000 Inventories Zubar Optical Mart Comparative Income Statement Years Ended December 31, 2020, and 2019 300,000 4,100 159,000 $ 200,000 283,000 185,000 31,000 Prepaid expenses Total current assets 2020 2019 564,100 289,000 521,000 279,000 Property, plant, and equipment, net Net sales $ 690,000 $ 370,000 597,000 277,000 $ 853,100 $ 800,000 Total assets 710.000 Cost of goods sold Gross profit 320,000 124,000 320,000 140,000 Accounts payable 108,000 Operating expenses Income from operations 160,000 131.000 94,000 187.000 Other current liabilities 1. Compute the following ratios for 2020 and 2019: a. Current ratio b. Quick (acid-test) ratio C. Receivables tumover and days' sales outstanding (DSO) (round to the nearest whole day) d. Inventory turnover and days inventory outstanding (DIO) (round to the nearest whole day) e. Accounts payable tumover and days payable outstanding (DPO) (round to the nearest whole day) f. Cash conversion cycle (in days) g. Times-interest-earned ratio h. Return on assets i. Return on common shareholders equity 1. Earnings per share of common shares g. Pricelearnings ratio 2. Decide whether (a) Zubar's financial position improved or deteriorated during 2020 and (b) the investment attractiveness of Zubar's common shares appears to have increased or decreased. 3. How will what you leamed in this problem help you evaluate an investment? 196,000 37,000 180,000 41.000 Total current liabilities Interest expense $ 291,000 $281.000 239.000 231,000 Income before income tax 159.000 139,000 53,000 Long-term liabilities Total liabilities 39,000 Income tax expense 530,000 323.100 512,000 288,000 Common shareholders' equity, no par 198,000 $ 120,000 $ 86,000 Net income $ 853,100 $ 800,000 Total liabilities and shareholders' equity Choo * Selected 2018 amounts Print Done 16 Print Done