Do all the following and please show the workings. Thank you

Perfect Smile Company Statement of Income For the year ended December 31 Sales Revenue (Note 1) Cost of Goods Sold: Gross Margin 2021 $3,423,143 1,432,048 1,991,095 2020 $3,318,103 1,290,742 2,027,361 975,877 195,175 273,246 1,444,298 914,997 182,999 311,099 1,409,095 Operating expenses Sales and marketing expenses Occupancy expenses Administration expenses Total operating expenses Operating income Non-operating or other Gain (loss) on sale of land and building Interest (expense) income Total non-operating 113,648 19,911 133,559 14,630 20,274 34,904 Income before tax Income tax expense Net Income (Loss): 413,238 92,979 320,260 583,362 137,090 446,272 Note 1: Management has determined that 80% of its sales were on credit in 2021, and 90% in 2020. 2020 2019 102,178 701,445 19,518 707,705 1,530,847 130,830 330,000 17,579 636,935 1,115,344 Perfect Smile Company Statement of Financial Position As at December 31 2021 Assets Current assets: Cash 65,930 Accounts receivable, net (Note 2) 865,982 Prepaid expenses 17,794 Inventory 777,698 Total current assets 1,727,404 Non-Current Assets Marketable securities 500,000 Property plant & equipment, net 579,559 Total assets 2,806,963 Liabilities and shareholders' equity Current liabilities: Accounts payable 738,265 Unearned revenue 67,102 Bank loan, current portion 75,000 Total current liabilities 880,367 Non-Current liabilities: Bank loan payable 683,000 Total liabilities 1,563,367 Shareholders' equity Sharecapital 519,250 Retained earnings 724,345 Total liabilities and shareholders' equity 2,806,963 400,000 577,890 2,508,737 50,000 543,000 1,708,344 691,077 30,574 75,000 796,651 306,093 57,017 75,000 438,110 758,000 1,554,651 833,000 1,271,110 400,000 554,086 2,508,737 200,000 237,234 1,708,344 Note 2: Accounts receivable is net of allowance for doubtful accounts (AFDA). Note 2: Accounts receivable is net of allowance for doubtful accounts (AFDA). Perfect Smile Company Statement of Cash Flows For the Year Ended December 31 2021 2020 320,260 70,284 -113,648 446,272 96,580 -14,630 -164,537 -69,993 1,724 47,188 36,528 -371,445 -70,771 -1,939 384,984 -26,443 Cash Flows from Operating Activities Net Income Depreciation Expense Gain on sale of Equipment Changes in working capital items: Accounts Receivable Inventories Prepaid expenses Accounts Payable Unearned revenue Net cash used for operating activities Cash Flows from Investing Activities Add: Purchase of marketable securities Add: Proceeds from Sale of Equipment Deduct: Acquisition of equipment Net cash provided by investing activities Cash Flows from Financing Activities Issurance (repurchase) of common shares Less: Dividends Paid Less: Repayment of Bank Loan Net cash used for financing activities 127,807 442,608 -100,000 209,000 - 167,305 -58,305 -350,000 56,000 -172,840 -466,840 119,250 -150,000 -75,000 -105,750 200,000 - 129,420 -75,000 -4,420 Overall increase (decrease) in cash Cash position at beginning of year Cash position at end of year -36,248 102,178 65,930 - 28,652 130,830 102,178 Requirement 1a - Ratio Analysis Please ensure you read the notes to the financial statements. Please calculate each of the following ratios for 2020 and 2021. Answers must be in the blue cells provided using formulas in Excel (do not use your calculator and input your final answer into Excel). 2021 1.93 189.30 2020 1.92 190.12 Cost of Goods Sold / Average Inventory 365 days / Inventory Turnover Credit Purchases/ Average Accounts Payable |365 / Accounts Payable Turnover Activity Ratios Inventory Turnover Days to Sell Inventory Accounts Payable Turnover Average Payment Period Solvency Ratios Debt to Equity Profitability Ratios Profit Margin Return on Equity Return on Assets Net debt / Shareholders Equity Net Income / Sales Revenue Net Income / Average Total Shareholders Equity Net Income / Average Total Assets Requirement 1b - Financial Statement Analysis i) Management has a policy of trying to sell inventory in 200 days. Since they pay for shipping and insurance they typically purchase inventory in large quantities. Is management meeting this target? Comment on the change year to year. ii) Has the inventory turnover ratio improved or worsened from 2020 to 2021? iii) What has happened to the days to sell inventory from 2020 to 2021? v) What does the debt to equity ratio tell you? Comment on the change year to year. v) What does the debt to equity ratio tell you? Comment on the change year to year. vi) Have the profitability ratios improved or worsened? Profit Margin Return on Equity Return on Assets What do the profitability ratios mean to shareholders