Following are the financial statements for Sedgwick Corporation for the year ended December 31, 2020: ASSETS Current Assets Cash $ 76,593 Accounts receivable 119,221 Inventory 248,738 Supplies 6,703 Total current assets $ 451,255 Property, Plant, & Equipment Land $ 95,601 Buildings $ 797,882 Less: Accumulated depreciation 175,534 $ 622,348 Store equipment $ 496,420 Less: Accumulated depreciation 54,606 $ 441,814 Total property, plant, & equipment $ 1,159,763 Total assets $ 1,611,018 LIABILITIES Current Liabilities Accounts payable $ 246,371 Wages payable 12,746 Income taxes payable 23,048 Total current liabilities $ 282,165 Non-Current Liabilities Long-term notes payable (due to be repaid in 5 years) 457,652 Total liabilities $ 739,817 EQUITY Common shares $ 106,565 Retained earnings 764,636 Total equity 871,201 Total liabilities & equity $ 1,611,018 Sedgwick Corporation Balance Sheet December 31, 2020 Sales $ 2,484,096 Cost of goods sold 1,525,467 Gross profit $ 958,629 Operating expenses: Advertising $ 142,463 Salaries 405,004 Insurance 103,500 Supplies 25,521 Depreciation 73,329 Rent 27,379 777,196 Profit from operations $ 181,433 Less: Other expenses: Interest 45,765 Profit before tax $ 135,668 Income taxes 47,484 Profit $ 88,184 Additional Information: 1. $ 140,544 2. Sedgwick had inventory in the following amount on December 31, 2019: $ 275,127 3. $ 783,017 4. All of Sedgwick's sales for the 2020 year were made on account. 5. Required: 1. Calculate each of the following ratios for Sedgwick Corporation (8 marks): (a) Current ratio (b) Inventory turnover (c) Return on common shareholders' equity (d) Times interest earned (e) Gross profit (margin) percentage (f) Earnings per share (g) Debt-to-equity ratio 2. State if the above ratios are favourable or unfavourable in comparison to the industry ratios below. Explain why they are favourable or unfavourable (7 marks): (a) Current ratio 1.3: 1 (b) Inventory turnover 4.5 times 14.76% (d) Times interest earned 10.8 times (e) Gross profit (margin) percentage 54% (f) Earnings per share $3.22 per share (g) Debt-to-equity ratio 0.42: 1 Sedgwick had accounts receivable in the following amount on December 31, 2019: Sedgwick had 20,000 common shares outstanding for the entire 2019 and 2020 fiscal years. Sedgwick had total common shareholders' equity in the following amount on December 31, 2019: (c) Return on common shareholders' equity