PART B (20 Marks) Meadow Farms ngt of Financial Position and Statement of Income for Meadow Farms Inc Posi 1. Below is the 2017 and 2018 Statement Dec 31, 2017 $150,000 650,000 750,000 250,000 1800,000 Dec 31, 2018 S300,000 900,000 1,000,000 400,000 2,600,000 Cash Short term investments Accounts receivable Inventory 400,000 900,000 (250,000) 400,000 900,000 (300,000) 1000,000 Land Building, at cost Building, accumulated depreciation 1,050,0 $2.850,000 $3,600,000 Total Assets 450,000 500,000 300,000 350 Accounts payable Long-term debt 1,000 2.649,000 2,650,000 Common shares Retained Earnings 1,000 2.199.000 S3.600,000 Total Liabilities and Equity $2,850,000 $4,600,000 Sales $5,800,000 Cost of goods sold Gross Profit 3.400,000 5.200,000 600,000 Depreciation expense Operating expenses 50,000 280,000 330,000 70,000 75,000 290,000 365,000 Net Income before taxes 235,000 Required A: (9 marks) From marks) A formula sheet is found at the back of the exam: above, calculate the following (two decimal places and show calculations for part 2017 2018 1. Current Ratio at Dec 31, 2018 and 2017 (2marks) 2. Debt to equity ratio at Dec 31, 2018 and 2017 (2 marks) 3, Gross Profit Percentage at Dec 31, 2018 and 2017 (2 marks) Required B: (3 marks) From your calculations in required (A) above, please analyze each ratio and indicate whether the ratio has improved or deteriorated from 2017 to 2018. Current Ratio Debt to Equity Ratio Gross Profit Percentage