FFT Corporation Comparative Statements of Financial Position 31-Dec-20 Instructions Assets 2020 2019 (i) Using the financial statements and the additional information, calculate the following ratios for 2020: Cash $50,000 $25,000 (ii) Compare the companys ratios to the industry ratios found in brackets above. Accounts receivable 65,000 50,000 Ratio Compared to Industry Merchandise inventory 60,000 70,000 a Quick ratio (2 to 1) Prepaid Expenses 55,000 30,000 Property, plant, and equipment 300,000 250,000 Total assets $530,000 $425,000 Liabilities and shareholders' equity Accounts payable $25,000 $30,000 b Inventory turnover (3 times) Short-term bank loan payable 50,000 65,000 Bonds payable 150,000 160,000 c Debt to equity ratio (3:1) Common shares 150,000 95,000 Retained earnings 125,000 75,000 d Gross profit margin (38%) Total liabilities and shareholders' equity $500,000 $425,000 e Days in receivables (58 days) FFT Corporation Income Statement Year Ended December 31, 2020 f Return on equity (14%) Net sales $350,000 g Cash current debt coverage ratio (1 time) Cost of goods sold 210,000 Gross profit 140,000 Expenses Operating expenses $40,000 Amortization expense 22,000 Marking Interest expense 15,000 (i) one mark for each correct calculation Total expenses 77,000 (ii) one mark for each correct comparison Profit before income tax 63,000 Income tax expense 20,000 Profit $43,000 Additional information for 2020: 1 Cash dividends declared and paid. $28,000 2 Net cash provided by operating activities in 2020 $82,000