Group Assignment #L 4B.XISX ment #1 - Chapter 4B.xlsx gnment #1 - Chapter 4B.xlsx (14.3 KB) RED From the financial statements in the included worksheet: A. B. C. Prepare a horizontal and vertical analysis of the 2021 and 2020 financial statements (Income Statement and Balance Sheet). Calculate ratios for 2021 and 2020 for the following: Current Ratio (times) Debt-to-total assets (%) Times-Interest-Earned (times) Average Collection Period (days) Inventory Turnover (times) Capital Assets Turnover (times) Return on Total Assets (%) Return on Equity (%) Provide comments on how the business is doing from your analysis completed in Parts A and B. 4B.xlsx Isx (14.3 KB) ABC Inc. Balance Sheets Assets Current Assets: Cash Accounts Receivable Inventory Dec 31/21 Dec 31/20 $235,000 $385,000 185,000 205,000 775,000 605,000 Other Current Assets 205,000 225,000 Total Current Assets 1,400,000 1,420,000 Property, Plant, and Equipment, net 1,175,000 1,275,000 Total Assets $2,575,000 $2,695,000 Liabilities and Shareholders' Equity Current Liabilities: Accounts Payable Short Term Debt Payable Other Current Liabilities Total Current Liabilities Long-Term Debt Total Liabilities Shareholders' Equity: Common Shares Retained Earnings $205,000 $190,000 385,000 345,000 290,000 275,000 880,000 810,000 185,000 395,000 1,065,000 1,205,000 1,365,000 1,365,000 145,000 125,000 Total Shareholders' Equity 1,510,000 1.490.000 4.3 KB) Shareholders' Equity: Common Shares Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity ABC Inc. Income Statements 1,365,000 1,365,000 145,000 125,000 1,510,000 1,490,000 $2,575,000 $2,695,000 A Year Ended Dec31/21 Year Ended Dec31/20 Net Sales Cost of Goods Sold Gross Margin $1,675,000 $1,715,000 1,050,000 1,205,000 625,000 510,000 Operating Expenses: Selling Expense 295,000 202,000 General and Administrative Expenses 197,500 187.500 Total Operating Expenses 492.500 389,500 ABC Inc. Income Statements Year Ended Dec31/21 Year Ended Dec31/20 Net Sales Cost of Goods Sold Gross Margin $1,675,000 $1,715,000 1,050,000 1,205,000 625,000 510,000 Operating Expenses: Selling Expense 295,000 202,000 General and Administrative Expenses 197,500 187,500 Total Operating Expenses 492,500 389,500 Operating Income 132,500 120,500 Interest Expense 36,000 62,000 Income Before Taxes 96,500 58,500 Income Taxes 24,000 14,000 Net Income $72,500 $44,500