Comparative financial statements for Blossom and Ayayai Ltd. are shown below. BLOSSOM AND AYAYAI LTD. Income Statement Year Ended December 31 2021 2020 Net sales $835,000 $820,000 Cost of goods sold 595,000 550,000 240,000 270,000 154,000 150,000 86,000 120,000 Gross profit Operating expenses Profit from operations Other revenues and expenses Interest expense Profit before income tax 30,000 20,000 56,000 100,000 30,000 20,000 Other revenues and expenses Interest expense Profit before income tax Income tax expense 56,000 100,000 12.000 20,000 Profit $44,000 $80,000 BLOSSOM AND AYAYAI LTD. Balance Sheet December 31 Assets 2021 2020 2019 Cash $88,000 $80,000 $10,000 Accounts receivable 108,000 116,000 120,000 Inventories 125,000 120,000 96,000 Accounts receivable 108,000 116,000 120,000 125,000 120,000 96,000 Inventories Prepaid expenses Land, buildings, and equipment 25,000 20,000 112.000 390,000 305,000 300,000 Total assets $736,000 $641,000 $638,000 Liabilities and Shareholders' Equity Liabilities Notes payable $110,000 $100,000 $100,000 Accounts payable 50,000 43,000 32,000 30,000 Accrued liabilities Bonds payable, due 2024 Total liabilities 40,000 40,000 150,000 330,000 190.000 179.000 375.000 359,000 Accrued liabilities 32,000 40,000 30,000 Bonds payable, due 2024 190,000 150,000 179,000 Total liabilities 375,000 330,000 359,000 200,000 200,000 200,000 Shareholders' equity Common shares (20,000 issued) Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 161,000 111,000 79,000 361,000 311,000 279,000 $736,000 $641,000 $638,000 Additional information: 1. Seventy-five percent of the sales were on account The allowance for doubtful accounts was $4,000 in 2021, $5,000 in 2020, and $3,000 in 2019. 2. Additional information: 1. 2. 3. Seventy-five percent of the sales were on account. The allowance for doubtful accounts was $4,000 in 2021, $5,000 in 2020, and $3,000 in 2019. In 2021 and 2020, dividends of $2,000 and $8,000, respectively, were paid to the common shareholders. Cash provided by operating activities was $103,500 in 2021 and $120,000 in 2020. Cash used by investing activities was $104,000 in 2021 and $30,000 in 2020. 4. 5. (a) Calculatellocsihte limited for 2009 decoded (a) Calculate all possible liquidity, solvency, and profitability ratios for 2021 and 2020. (Round answers for Collection period, Days sales in inventory, Operating cycle and Free cash flow to decimal places, eg 125. Round answer for Earnings per share to 2 decimal places, eg. 12.50. Round all other answers to 1 decimal ploce, eg. 12.5 or 12.5%. Enter negative amount using either a negative sign preceding the number eg.-45 or parentheses eg (451) 2021 2020 Liquidity Ratios 1 Current ratio 1.9 1 19 - 1 2 Acid-test ratio : 1 :1 3 Receivables turnover times times Collection period days days ZU21 Liquidity Ratios 1. Current ratio 1.9 :1 1.9 :1 2 Acid-test ratio :1 : 1 3. Receivables turnover times times 4 Collection period days days 5. Inventory turnover times times 6. Days sales in inventory days days 7. Operating cycle days days Solvency Ratios 8. Debt to total assets % de 9. Interest coverage times times 10. Free cash flow $ $ Profitability Ratios 11. Gross profit margin 12 Profit margin % 13. Asset turnover times times Profitability Ratios % 11 % Gross profit margin 12 %6 Profit margin % 13. Asset turnover times times 14 96 Return on assets % 15. X Return on equity % 16. Earnings per share 17 % % Payout ratio