..ll Ooredoo 1:35 PM Done project 3 Leeds Balance Sheet Leeds Income statement Creative Balance Sheet Creative Income Statement TA DO Ten Pytand Am 15. Tas L . . We prsion of one To Carrere orgde dete Tata Ko sex roman Jeding 2010 2009 Pad 200.000 twenty ..ll Ooredoo 1:36 PM Project+2021+NEW 3 Done 1. Compile the Pro forma Income statement for Leeds and Creative companies for the year 2020 using percent of sales method. Use the information provided on the excel sheets. (3 marks) 2. Fill in the missing amounts in Leeds and Creative companies' balance sheets. (3 marks) Given that: Leeds market price per share in 2020 = $8 Leeds dividends in 2020 - $22,000. Creative market price per share in 2020 =$10. Creative dividends in 2020 = $34,000. 3. Calculate the financial ratios for both companies in 2020. (3 marks) Note: Purchases were %70 of the cost of goods sold for both companies in 2020. CH Current Intary AL reve perit Aid Det De Ti interest G Chango Net RO MO 4. Analyze the overall financial situation from a 4. Analyze the overall financial situation from a cross-sectional viewpoint. Compare each company's ratios with the industry average. What are the strengths and weaknesses of each company? Which company is best to invest in and why? (3 marks) Financial ratio Industry Average Current ratio 2 Quick ratio 1.91 Inventory turnover 8.12 times Average age of inventory 42 days Average collection period 30 days Average payment period 50 days Asset turnover 0.85 Debt ratio 50% Debt to equity ratio 90% Times interest earned ratio 5 Times Gross profit margin 32% Operating profit margin 14% Net profit margin ROA 7% ROE 12% 8% 5. Prepare the cash flow statement for both companies for the year ended December 31st, 2020, using the indirect method