i understand where to put my work for required #1,

i need help with where and how to do required #2. please help! thank you!

Before you begin, print out all the pages in this workbook. The financial statements of Dandy Distributors Ltd. are shown on the "Rd. Stmts." page: Required: 1 Based on Dandy's financial statements, calculate ratios for the year ended December 31, 2020, Assume all sales are on credit. Show your work 2 From these ratios, analyze the financial performance of Dandy. ABC D L M E F G H Dandy Distributors Ltd. Income Statement For the Year Ended December 31, 2020 2020 $21,133,000 16,061,080 5,071,920 2019 $19,442,360 14,970,617 4,471,743 841,000 104,400 153,600 422,660 1,521,660 832,590 95,004 152,064 431,113 1,510,771 6 Sales, net 7 Less: Cost of goods sold Gross profit 9 Operating expenses 10 Selling 11 Salaries and benefits 12 Delivery 13 Office supplies 14 Warranty 15 Total selling 16 General and administrative Bad debts 18 Depreciation 19 Professional fees 20 Total general and adminstrative 21 Total operating expenses 22 Income (loss) from operations 23 Other income (expenses) 24 Rent revenue 25 Income (loss) before interest and income taxes 26 Interest expense 27 Income (loss) before income taxes 28 Income taxes (recovered) 29 Net income (loss) 17 633,990 1,176,660 168,900 1,979,550 3,501,210 1,570,710 646,670 1,200,193 157,077 2,003,940 3,514,711 957,032 187,000 1,757,710 682,245 1,075,465 247,357 $828,108 200,090 1,157,122 668,600 488,521 112,360 $376,162 31 32 2019 Dandy Distributors Ltd. Statement of Changes in Equity For the Year Ended December 31, 2020 2020 Retained Common earnings stock Pref. stock (deficit) $652,000 $19,670 $5,353,112 27,400 828,108 34. 35 36 37 38 Balance (deficit) at Jan. 1 39 Stock issued 40 Net Income (loss) 41 Cash dividends declared 42 Preferred 43 Common 44 Balance (deficit) at Dec. 31 Total equity $6,024,782 27,400 828,108 Total equity $5,730,250 376,162 (39,300) (38,400) $6,103,520 (39,300) (38,400) $6,802,590 (43,230) (38.400) $6,024,782 $679,400 $19,670 45 Form Date Review 072 ABC D E F G H K M 46 47 48 Dandy Distributors Ltd. Balance Sheet At December 31, 2020 Assets Current Cash Accounts receivable, net Inventories 2020 $63,000 4,020,000 2,420,000 6,503,000 2019 $20,540 4,221,000 2A68,400 6,709,940 50 51 52 53 54 55 56 57 58 59 60 61 62 Plant assets Land Building, net Patents, net Goodwill 8,624,000 6,537,000 27,300 25,600 15,213,900 $21,716,900 8,541,260 6,929,220 27,300 25,600 15,523,380 $22,233,320 63 64 65 66 67 $642,160 110,544 209,520 68 69 70 71 72 Liabilities Current Trade accounts payable Estimated current liabilities Estimated warranty liabilities Note payable Dividends payable Interest payable Salaries and benefits payable Sales tax payable Unearned rent Current portion of mortgage payable Corporate income taxes payable $698,000 117,600 194,000 24,200 77,700 14,300 90,000 23,000 19,500 2,237,764 11,110 3,507,174 81,630 14,157 89,100 23,920 16,674 1,621,014 11.443 2,820,163 73 74 75 76 77 78 79 80 81 82 Non-current Mortgage payable Less Current portion 13,644,900 (2,237,764) 11,407,136 14,914,310 15,009,390 (1,621,014) 13,388,376 16,208,538 Total liabilities Fel. Stmts Fol. Ratios + Required Calculate 072 E G H L M 53 54 55 ABC D Accounts receivable, net Inventories 4,020000 2,420,000 6,503,000 K 2,221,000 2,468,400 6,709,940 56 57 58 59 60 61 Plant assets Land Building, net Patents, net Goodwill 8,624,000 6,537,000 27,300 25,600 15,213,900 $21,716,900 8,541,260 6,929,220 27,300 25,600 15,523,380 $22,233,320 62 63 64 65 66 67 68 69 70 71 72 73 $642,160 110,544 209,520 Liabilities Current Trade accounts payable Estimated current liabilities Estimated warranty liabilities Note payable Dividends payable Interest payable Salaries and benefits payable Sales tax payable Unearned rent Current portion of mortgage payable Corporate income taxes payable $698,000 117,600 194,000 24,200 77,700 14,300 90,000 23,000 19,500 2,237,764 11,110 3,507,174 81,630 14,157 89,100 23,920 16,674 1,621,014 11,443 2,820,163 74 75 76 77 78 79 80 81 82 83 84 85 86 Non-current Mortgage payable Less: Current portion 13,644,900 (2,237,764) 11,407,136 14,914,310 15,009,390 (1,621,014) 13,388,376 16,208,538 Total liabilities Stockholders' Equity Common stock, $i per share Preferred stock, $10 per share Retained earnings (deficit) 679 400 19,670 6,103,520 6,802,590 $21,716,900 652,000 19,670 5,353,112 6,024,782 $22,233,320 87 88 89 Total liabilities and S/H equity 90 Required FL Stmts. Fcl. Ratios + Calculate Dandy Distributors Ltd. Selected Financial Ratios 2018 2.7 1.7 a. Current ratio b. Acid-test ratio c. Accounts rec. collection (days) d. Days of sales in inventory e. Revenue operating cycle (days) f. Gross profit ratio 8. Operating profit ratio h. Net profit ratio i. Sales to total assets ratio j. Return on total assets ratio k. Return on s/h equity ratio I. Debt to s/h equity ratio m. Times interest earned n. Earnings (loss) per common share o. Price-earnings ratio (given) p. Dividend yield per common share (given) 2020 industry average 1.9 1.2 70 52 122 25.7% 8.2% 4.3% 1.0 7.8% 14.2% Dandy's ratios 2020 2019 2.4 1.5 79 60 139 23.0% 4.9% 1.9% 0.9 4.2% 6.4% 2.7 1.4 $0.51 23 15 94 67 167 22.8% 4.3% 1.6% 0.7 3.4% 5.2% 3.0 1.2 $0.43 12 4.1 2.4 $1.72 28 5% 5% 5% 6%