Comparative financial statements for Ivanhoe and Sarasota Ltd. are shown below. IVANHOE AND SARASOTA LTD. Income Statement Year Ended December 31 2021 Net sales $885.000 Cost of goods sold 615,000 Gross profit 270,000 Operating expenses 164.000 Profit from operations 106,000 Other revenues and expenses Interest expense 40,000 Profit before income tax 66,000 Income tax expense 2,000 Profit $64,000 2020 $825,000 565,000 260.000 160,000 100,000 20,000 80,000 20,000 $60,000 2019 $10,000 100,000 96,000 112,000 300,000 $618,000 IVANHOE AND SARASOTA LTD. Balance Sheet December 31 Assets 2021 2020 Cash $93,000 $90,000 Accounts receivable 101,000 97,000 Inventories 135,000 130,000 Prepaid expenses 25,000 22.000 Land, buildings, and equipment 390,000 305,000 Total assets $744,000 $644,000 Liabilities and Shareholders' Equity Liabilities Notes payable $110,000 $100,000 Accounts payable 43,000 40,000 Accrued liabilities 32,000 45,000 Bonds payable, due 2024 190,000 150.000 Total liabilities 375,000 335,000 Shareholders' equity Common shares (20,000 issued) 200,000 200,000 Retained earnings 169,000 109.000 Total shareholders' equity 369,000 309,000 Total liabilities and shareholders' equity $744,000 $644,000 $100,000 60,000 35,000 164,000 359,000 200,000 59,000 259.000 $618,000 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 $4,000 and $10,000, respectively, were paid to the common shareholders Cash provided by operating activities was $103,500 in 2021 and $123.000 in 2020. Cash used by investing activities was $107,500 in 2021 and $31,000 in 2020. 4. 5. 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 O 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, e8, 12.5 or 12.5%. Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses eg. (451) 2021 2020 Liquidity Ratios 1 Current ratio 2 Acid test ratio :1 Receivables turnover times times 4. Collection period days days 5. Inventory turnover times times 6. Days sales in inventory days days 2 Operating cycle days days Solvency Ratios 8 Debt to total assets % % 9. times times Interest coverage Free cash flow 10. $ $ % % Profitability Ratios 11 Gross profit margin 12. Profit margin % % 13 Asset turnover times times 14. Return on assets % % 15 Return on equity % 16 Earnings per share $ $ 17 Payout ratio 96