Following are the financial statements for Sedgwick Corporation for the year ended December 31, 2020: Sedgwick Corporation Balance Sheet December 31, 2020 ASSETS $ Current Assets Cash Accounts receivable Inventory Supplies Total current assets 76,289 120,717 251,584 6,688 $ 455,278 99,507 $ Property, Plant & Equipment Land Buildings Less: Accumulated depreciation Store equipment Less: Accumulated depreciation Total property, plant, & equipment Total assets $ 798,801 175,736 $ 497,289 54,702 $ 623,065 $ 442,587 $ 1,165,159 $ 1,620,437 LIABILITIES Current Liabilities Accounts payable $ 244,955 Wages payable 16,403 Income taxes payable 24,164 Total current liabilities Non-Current Liabilities Long-term notes payable (due to be repaid in 5 years) Total liabilities $ 285,522 459,908 $ 745,430 $ EQUITY Common shares Retained earnings Total equity Total liabilities & equity 104,542 770,465 $ 875,007 1,620,437 Sedgwick Corporation Income Statement For the Year Ended December 31, 2020 s 2,484,991 1,518,402 966,589 $ $ Sales Cost of goods sold Gross profit Operating expenses: Advertising Salaries Insurance Supplies Depreciation Rent Profit from operations Less: Other expenses: Interest Profit before tax Income taxes Profit 146,942 402,645 101,224 24,817 73,256 25,597 774,481 192,108 $ $ 45,991 146,117 51,141 94,976 $ 141,410 275,102 780,031 Additional Information: 1. Sedgwick had accounts receivable in the following amount on December 31, 2019: $ 2. Sedgwick had inventory in the following amount on December 31, 2019: $ 3. Sedgwick had total common shareholders' equity in the following amount on December 31, 2019: $ 4. All of Sedgwick's sales for the 2020 year were made on account. 5. Sedgwick had 20,000 common shares outstanding for the entire 2019 and 2020 fiscal years. 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 Idy Times interest earned le Gross profit (margin) percentage (1) Earnings per share (el 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 marks (a) Current ratio (b) Inventory turnover 4.5 times (c) Return on common shareholders' equity 14.76% (d) Times interest earned 10.8 times (e) Gross profit (margin) percentage (1) Earnings per share $3.22 per share le) Debt-to-equity ratio 0.42:1 54%