Please answer the question 4 in the pictures. Many thanks for your help!

Question 4 Total: 25Marks Suggested time allocation: 45 Minutes The comparative statements of Lord-lord Limited are presented below. Lord-lord Limited Balance Sheet as at 30 June (All figures are in $) 2020 2019 2018 Cash 27,500 22,000 19,800 Accounts receivable (net) 55,000 49,500 52,800 Inventory 33,000 30,000 30,400 Other current assets 66,000 74,500 40,000 Long term Investments 82,500 77,000 49,500 Plant and equipment (net) 440,000 407,000 393,800 Total assets 704,000 660,000 586,300 Current liabilities 82,500 88,000 77,000 Long term debt 88,000 93,500 55,000 Common stock / Ordinary shares $10 par 374,000 341,000 330,000 Retained earnings 159,500 137,500 124,300 Total liabilities and shareholders equity 704,000 660,000 586,300 Semester 1, 2019 FINAL EXAMINATION Page 7 of 8 ACT501 -Accounting Principles THIS EXAMINATION PAPER AND SUPPLIED MATERIALS ARE NOT PERMITTED TO BE REMOVED FROM ANY EXAMINATION VENUE IN ANY CIRCUMSTANCE. THIS EXAMINATION IS PRINTED DOUBLE-SIDEDLord-lord Limited The income statement for the year ended 30 June (All figures are in $) 2020 2019 Sales revenue 814,000 770,000 Less, sales returns and allowances 44,000 55,000 Net sales 770,000 715,000 Cost of goods sold 462,000 440,000 Gross profit 308,000 275,000 Operating expenses including income taxes 175,000 180,000 Interest expense 25,000 20,000 income tax expense 58,500 42,000 Net income 49,500 33,000 Additional information: i. The market price of Landlord Limited shares was $4.00, $5.00, and $8.00 for 2018, 2019, and 2020 respectively. ii. The share of credit sales for 2018, 2019, and 2020 were 20%, 22%, and 24% of total sales for the year, respectively. iii. All dividends were paid in cash. In 2018, 2019, and 2020, 10 cents per share dividend was declared and paid in the same year. Keys to following ratios are provided below. i. Profit margin = net income / net sales ii. Assets turnover = net sales/ average total assets Inventory turnover = cost of goods sold / average inventory iv. Return on assets = net income / average total assets V. Return on ordinary shareholders equity = net income - preferred dividends / average common stockholders' equity vi. Earnings per share = = net income - preferred dividends /weighted average common stocks/ shares outstanding Required: a) Calculate the above ratios for 2020 year (12 Marks) Identify the relevant ratios, and comparing 2020 and 2019 years, interpret the profitability position using each ratio (12 Marks) c) State the overall conclusion of the profitability position with reasons (1 Marks)