Comparative financial statements for Crane and Pronghorn Ltd. are shown below. CRANE AND PRONGHORNLTD. Income Statement Year Ended December 31 2021 2020 Net sales $905,000 $845.000 Cost of goods sold 615.000 565.000 Gross profit 290.000 280,000 Operating expenses 164.000 160.000 Profit from operations 126,000 120,000 Other revenues and expenses Interest expense 40.000 20,000 Profit before income tax 86.000 100,000 Income tax expense 22.000 20,000 Profit $64.000 $80,000 2019 $10.000 107.000 97,000 112,000 300,000 $626,000 CRANE AND PRONGHORN LTD. Balance Sheet December 31 Assets 2021 2020 Cash $89.000 $83.000 Accounts receivable 138,000 134,000 Inventories 125.000 120.000 Prepaid expenses 25.000 20,000 Land, buildings, and equipment 390.000 305.000 Total assets $767.000 $662,000 Liabilities and Shareholders' Equity Liabilities Notes payable $110.000 $100,000 Accounts payable 46,000 43,000 Accrued liabilities 32.000 40.000 Bonds payable, due 2024 190.000 150.000 Total liabilities 378,000 333.000 Shareholders' equity Common shares (20,000 issued) 200.000 200.000 Retained earnings 189.000 129,000 Total shareholders' equity 389,000 329,000 Total liabilities and shareholders' equity $767,000 $662,000 $100,000 50,000 30.000 187.000 367.000 200.000 59.000 259.000 $626,000 Additional information: 1. Seventy-five percent of the sales were on account. 2. The allowance for doubtful accounts was $4.000 in 2021. $5,000 in 2020, and $3,000 in 2019. 3. In 2021 and 2020, dividends of $4,000 and $10,000, respectively, were paid to the common shareholders. 4 Cash provided by operating activities was $103.500 in 2021 and $128.000 in 2020. 5. Cash used by investing activities was $112.000 in 2021 and $30.000 in 2020. (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 place, eg. 12.5 or 12.5%. Enter negative amount using either a negative sign preceding the number eg. -45 or parentheses eg. (45).) 2021 2020 Liquidity Ratios 1. Current ratio : 1 : 1 2. : 1 : 1 3. times times days days Acid-test ratio Receivables turnover Collection period Inventory turnover Days sales in inventory Operating cycle 5. times times 6. days days 7. days days 8. 96 96 Solvency Ratios Debt to total assets 9. Interest coverage Free cash flow times times 10. $ $ 96 % % Profitability Ratios 11. Gross profit margin Profit margin Asset turnover Return on assets 15. Return on equity Earnings per share . 13. times times 14. 96 96 % 16. $ $ 17. Payout ratio % %