Problem 1 J&K Co. Balance Sheet As of Dec 31 of years 2019 and 2020 2019 2020 Assets Cash Accounts Receivable Inventories Property, plant and Equipment Accumulated Depreciation Total Assets $269,167 $19,210 $510,000 $2,975,000 -$821,667 $2,951,710 $359,983 $30,756 $556,042 $2,975,000 -$830, 167 $3,091,613 Liabilities Accounts Payable Accrued Taxes Bank Loan Total Liablities $382,500 $127,500 $0 $510,000 $435,491 $42,883 $0 $478,373 Stockholder's Equity Common Stock Retained Earnings Total Stockholders Equity $566,667 $1,875,044 $2,441,710 $566,667 $2,046,574 $2,613,240 Total Liabilities+Equity $2,951,710 $3,091,613 J&K Co. Income Statement For the years ended on Dec 31 of 2019 and 2020 Sales (-) COGS (-) Variable S&A Contribution Margin Total Fixed Admin. Expenses Total Fixed Selling Expenses Operating Income (-) Financial Expenses (=) Earnings before Tax - Tax Expense =) Net Income $1,468,750 $897,917 $72,188 $498,646 $91,667 $91,667 $315,313 $0 $315,313 $63,063 $252,250 Calculate the following ratios: a: Current Ratio b: Quick Ratio c: Accounts Receivable Days d: Inventory Days e: A/P Days (estimate purchases for calculating this ratio) f: Operating Cycle g: Cash Cycle h: Return on Assets (ROA) (Direct approach, not DuPont) i: Return on Equity (ROE) (Direct approach, not Dupont)