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Comparative financial statements for Oriole and Sheffield Ltd. are shown below. ORIOLE AND SHEFFIELD LTD. Income Statement Year Ended December 31 2021 2020 Net sales

Comparative financial statements for Oriole and Sheffield Ltd. are shown below.

ORIOLE AND SHEFFIELD LTD. Income Statement Year Ended December 31
2021 2020
Net sales $860,000 $800,000
Cost of goods sold 595,000 545,000
Gross profit 265,000 255,000
Operating expenses 159,000 155,000
Profit from operations 106,000 100,000
Other revenues and expenses
Interest expense 40,000 20,000
Profit before income tax 66,000 80,000
Income tax expense 2,000 25,000
Profit $64,000 $55,000

ORIOLE AND SHEFFIELD LTD. Balance Sheet December 31
Assets 2021 2020 2019
Cash $94,000 $87,000 $10,000
Accounts receivable 87,000 83,000 101,000
Inventories 145,000 140,000 97,000
Prepaid expenses 25,000 25,000 113,000
Land, buildings, and equipment 390,000 305,000 300,000
Total assets $741,000 $640,000 $621,000
Liabilities and Shareholders Equity
Liabilities
Notes payable $110,000 $100,000 $100,000
Accounts payable 43,000 40,000 50,000
Accrued liabilities 32,000 45,000 30,000
Bonds payable, due 2024 190,000 150,000 182,000
Total liabilities 375,000 335,000 362,000
Shareholders equity
Common shares (20,000 issued) 200,000 200,000 200,000
Retained earnings 166,000 105,000 59,000
Total shareholders equity 366,000 305,000 259,000
Total liabilities and shareholders equity $741,000 $640,000 $621,000

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 $3,000 and $9,000, 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 $114,000 in 2021 and $33,000 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 0 decimal places, e.g. 125. Round answer for Earnings per share to 2 decimal places, e.g. 12.50. Round all other answers to 1 decimal place, e.g. 12.5 or 12.5%. Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

2021 2020
5. Inventory turnover times times
15. Return on equity % %
16. Earnings per share $ $
17. Payout ratio % %

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