please answer e. a b c d answered already

QUESTION 1 (47 marks) Wales Lague Corporation's comparative balance sheet for the year ended December and 2019 in millions of dollars appear below: 2 of 6 Balance Sheet as at December 31 ($' million) (5 Assets: 2020 2019 $ 27 33 $ 52 61 41 40 Cash and cash equivalent... Accounts receivable... Inventory....... Plant and equipment Less accumulated depreciation. Total assets... .. 531 460 330 327 $ 291 297 $44 21 $48 22 17 21 Liabilities and stockholders' equity: Accounts payable Wages payable. Income taxes payable Bonds payable due Dec 2028 Deferred taxes payable due April 2023 Common stock, $0.50 par, outstanding.............. Retained earnings... Total liabilities and stockholders' equity...... 65 60 16 18 71 70 93 58 $327 $297 s' Income Statement for the year ended December 31, 2020 ($' million) Sales revenue $515 $ Cost of goods sold 312 Gross margin 203 Selling and administrative expense (inclusive of depreciation expense) 134 Net operating income 69 Income taxes 21 Net income $48 During the year. $1 million worth of stock dividends were paid out to the common shareholders and there is no preferred stock. There was no disposal of assets during the year. Required: (a) Prepare the Statement of Cash flows for Wallace-Lague Corporation for the year ended December 31, 2020 using the Indirect Method. (15 marks) (b) What is Lague's Free Cash Flow? (3 marks) 2 (c) Briefly discuss Lague's Cash flow position. (5 marks) (d) Compute the following ratios for the year 2020 (2 marks) (2 marks) (2 marks) (2 marks) ) (2 marks) 0 Acid test (Quick ratio) (1) Accounts receivable turnover (days) (i) Inventory turnover (days) (iv) Earnings per share of common stock W Debt ratio (%) (vi) Return on common stockholders' equity (%) (vii) Reinvestment ratio (%) (vii) Dividend payout ratio (%) (ix) Operation index ratio (%) (*) Cash flow to revenue ratio (%) (2 marks) (2 marks) (2 marks) (2 marks) (2 marks) (e) Explain why liquidity and solvency ratios are important factors in analyzing a company like Wallace-Lague Corporation (4 marks)