Continuing Cookie chronicle 13 The comparative balance sheet of Cookie & Coffee Creations Inc. at October 31, 2020 for the years 2020 and 2019, and the income statements for the years ended October 31, 2019 and 2020, are presented below COOKIE&COFFEE CREATIONS INC. Balance Sheet October 31 2020 2019 Cash Accounts receivable Inventory Prepaid expenses Equipment Accumulated depreciation Total assets $22,324 3,250 7,897 5,800 102,000 $5,550 2,710 7,450 6,050 75,500 (25,200) (9,100) $116,071 88,160 abilities and Stockholders Equi Accounts payable Income taxes payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Note payable-long-term portion Preferred stock, no par, $6 cumulative 3,000 and 2,800 shares issued, respectively 15,000 14,000 Common stock, $1 par-25,180 shares issued $1,150 2,450 7,200 27,000 27,000 1,280 9,251 7,250 188 4,000 6,000 25,180 25,180 Add ditional linOrmation iNIO Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment. The loan would be repaid over a 4-year period. The terms of the loan provide for equal semi-annual payments of $2,500 on May 1 and November 1 of each year, plus interest of 5% on the outstanding balance Your answer is partially correct. Try again. Calculate the following ratios for 2019 and 2020. (Round current ratio to 2 decimal places, e.g. 12.61, debt to assets and gross profit rate to 0 decimal places, e.g. 12 and all other answers to 1 decimal place, eg. 12.6%.) 202 201 1. Current ratio 80 :1 47.21 % 54.11 % 2. Debt to assets 43.0 % 3. Gross profit rate 4. Profit margin 5. Return on assets (Total assets at November 1, 2018, were $33,180.) . Return on common stockholders' equity (Total common stockholders' equity at November 1, 2018, 55.01 % 7.61 % 36.21 % 69.2 % was $23,180. Dividends on preferred stock were $16,800 in 2019 and $18,000 in 2020). 461 % 72.6 LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT COOKIE&COFFEE CREATIONS INC. Income Statement Year Ended October 31 2020 2019 Difference Horizontal Analysis Sales $485,625 $462,500 23125 5 % Cost of goods sold Gross profit Operating expenses 222,694 208,125 14569 7 % 262,931 254,375 8556 31% Salaries and wages expense Depreciation expense Other operating expenses 147,979 146,350 1629 1 % 17,600 9,100 8500 41 % 42,925 213,765198,375 56,000 48,186 5261 111% Total operating expenses 15390 7 % Income from operations 49,166 (6834) (14 % Other expenses Interest expense 413 413 Loss on disposal of plant assets 2,500 2500 Other expenses Interest expense 413 .101% Loss on disposal of plant assets 2,500 .50 % Total other expenses 2,913 601 % Income before income tax 46,253 9.501 % 56,000 12.10 % Income tax expense 9,251 1.901% 14,000 3.0011 % Net income $37,002 7.60 $42,000 9.10 % LINK TO TEXT LINK TO TEXT LINK TO TEXTLINK TO TEXT Your answer is correct. What impact would borrowing an additional $20,000 to buy more equipment have on each of the ratios in (a) above, assuming that no change