Instructions Compute the following ratios for 2021. a. Return on common stockholders' equity. c. Current ratio. 8. Inventory turnover. 1. Times interest earned. k. Debt to assets ratio. 1. Free cash flow. P1. The comparative statements of Sam Company are presented here. Sam Company Income Statements For the Years Ended December 31 (unit = $) 2021 2020 Net sales $2,200,000 $2,000,000 Cost of goods sold 1,400,000 1,300,000 Gross profit 800,000 700,000 Selling and administrative expenses 420,000 340,000 Income from operations 380,000 360,000 Other expenses and losses Interest expense 60,000 70,000 Income before income taxes 320,000 290,000 Income tax expense 96,000 87,000 Net income 224,000 203,000 Sam Company Balance Sheets December 31 (unit = $) Assets Current assets Cash Debt Investments (short-term) Accounts receivable Inventory Total current assets Plant assets (net) Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Total liabilities Stockholders' equity Bonds payable Common stock ($5 par) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 2021 2020 68,000 64,000 72,000 56,000 120,000 100,000 140,000 110,000 400,000 330,000 | 800,000 670,000 1,200,000 1,000,000 160,000 140,000 60,000 50,000 220,000 190,000 580,000 460,000 800,000 650,000 300,000 300,000 100,000 50,000 400,000 350,000 1,200,000 1,000,000