please follow all the instructions!

Problem #1 (30 marks) Prepare a ratio analysis for Halifax Sports Inc. using an excel spreadsheet. The firm has 2 million shares authorized and has 1 million shares issued and outstanding. Halifax Sports Inc. Halifax Sports Inc. Balance Sheet (5000) Balance Sheet (5000) ASSETS 2020 2019 2020 2019 Current Assets Sales Revenues 160,000 125,000 Cash 485 9,000 Cost of Goods Sold 96,000 75,000 Short-term Investments 10 Contribution Margin 64,000 50,000 Cert. of Deposit 5 Operating Expenses Accounts Receivable 16,000 12,500 Salaries 11,000 11,000 Inventory 45 500 29,000 Wages 16,000 12,500 Total Current Assets 62,000 50,500 General/Admin 10,000 10,000 Land 26,000 20,000 Amort/Depr. 10,000 4,500 Buildings and Equipment 100,000 70,000 Interest 6,100 3,000 Accumulated Amortization 38.000 28.000 Earnings B4 Taxes 10,900 9,000 Net Plant & Equipment 88,000 62,000 Taxes 5,450 4,500 TOTAL ASSETS 150,000 112,500 Earnings After tax 5,450 4,500 LIABILITIES and SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable 22,000 10.500 Bank Note 40,000 10,000 Taxes Payable 2.500 2,000 Accrued Expenses 4,500 5,000 Total Current Liabilities 69,000 27,500 Long Term Debt First Mortgage Bonds 20.000 22,000 Debenture Bonds 2,950 6,750 Total Liabilities 22,950 28,750 Equity Common Shares 31. SOO 31,500 Retained Earnings 26,550 24,750 Total Equity 58,050 56,250 a) Using an excel spreadsheet calculate the following for both years: 30 marks NOTE: the use of the excel spreadsheet is mandatory and the excel spreadsheet must be embedded in the word document. Submitting a separate file to the spreadsheet is not acceptable. If the spreadsheet is not used, a mark of 0 will be applied to the question. Industry Ratio Formula Values Calculation Average Current Ratio 4.20 Quick Ratio 2.10 Receivables turnover 9.86 Day's Sales in Recievables 37.00 Inventory Turnover 2.50 Day's Sales in Inventory 146.00 Debt to Total Assets 58.00% Times Interest Earned 3.80 Total Asset Turnover 1.14 Fixed Asset Turnover 1.40 Return on Total Assets 4.00% Return on Equity 15.00% Gross Profit Margin 38.00% Operating Profit Margin 10.00% Profit Margin 3.50% You need to show your work for your calculations. For example Equity Multiplier Assets 150,000 Equity 58,050 2.584 b) Complete the cash flow statement for 2020 using an excel spreadsheet. (5 marks) c) Complete the sources and Uses Statement for 2020 using an excel spreadsheet. (5 marks) d) Complete the Cash Flow Identity Statement for 2020 using an excel spreadsheet. (5 marks) e) Complete common size statements for both the income statement and balance sheets for both years using an excel spreadsheet. (10 marks) f) Use the Dupont ratio to calculate the ROE and which ratio should the firm try to improve? (4 marks)