ences Mailings Review View Help Grammarly Search BUS 352: Chapter 3 Review 1) BC Logging Corporation's 2020 income statement and balance sheet are found below: 4 A BC Logging Corporation Balance Sheet For the Year Ended December 31, 2018 2018 2017 Assets Current Assets Cash and equivalents 105,000 98,000 Investments 15,000 10,000 Accounts Receivable 125,000 110,000 Inventory 58,000 48,000 Total Current Assets 303,000 266,000 Non-Current Assets Investments 75,000 50,000 1,300,000 1,350,000 Total non-Current Assets 1,375,000 1,400,000 Total Assets 1,678,000 1,666,000 Liabilities and Shareholders Equity Current Liabilities Accounts Payable 200,000 230,000 Accrued Liabilities 50,000 65,000 Uneamed Revenue 12,000 8,000 Current Portion of LT Debt 18,500 25,000 Total Current Liabilities 280,500 328,000 Non-Current Liabilities Long Term Debt 650,000 700,000 Total abilities 930,500 1,028,000 Shareholders Equity PPE (net) Bie angs Review View Help Total non-Current Assets Grammarly Search 1,375,000 1,400,000 1,678,000 1,666,000 Total Assets 200,000 50,000 12,000 18,500 280,500 230,000 65,000 8,000 25,000 328,000 650,000 700,000 930,500 1,028,000 Liabilities and Shareholders Equity: Current Liabilities Accounts Payable Accrued Liabilities Unearned Revenue Current Portion of LT Debt Total Current Liabilities Non-Current Liabilities Long Term Debt Total Liabilities Shareholders Equity Contributed Capital Common Shares, 120,000 shares authorized 70,000 issued and outstanding Preferred Shares, 50.5, cumulative, 45,000 outstanding Total Contributed Capital Retained Earnings Total Shareholder's Equity Total Liabilities and Shareholder's Equity 465,000 465,000 110,000 60,000 575,000 525,000 172,500 113,000 747,500 638,000 1,678,000 1,666,000 ChapterReview.docx Mailings Review View Help Grammarly O Search For the year ended December 31, 2018 2018 2017 2016 Sales 890,000 750,000 600,000 Cost of Goods Sold 600,000 545,000 436,000 Gross Profit 290,000 205,000 164,000 Selling and Admin Costs 195,000 145,000 116,000 Profit From Operations 95,000 60,000 48,000 interest Expense 4,900 4,500 3,600 Profit Before taxes 91,100 55,500 44,400 Income Tax Expense 27,330 16,650 13,320 Net Profit 63,770 38,350 30,680 a) Calculate the following ratios and explain whether it is increasing or decreasing profitablility: Cost of goods sold to sales . I Selling and Admin costs to Sales Interest Expense to sales Profit Margin Return on Assets Return on Shareholder's Equity Asset Turnover Ratio . . . b) Compute the following ratios for 2018 and 2017 explain whether the trend is favourable or unfavourable Inventory turnover AR Turnover Current Ratio Quick Ratio Debt to Assets Ratio Interest Coverage Fixed Charge Coverage . . e