Having completed your prior assignment on Westerson Inc., you have now been tasked with assisting in the Financial Statements and Ratio Analysis preparation for All Star Apparel Inc., a merchandising company, together with preparing the company's accounts for the next financial period. A colleague has provided the company's Adjusted Trial Balance: All Star Apparel Inc. Adjusted Trial Balance December 31, 2020 Accounts Cash Accounts Receivable Inventory Prepaid Rent Building Accumulated Depreciation-Building Unearned Service Revenue Notes Payable (due 2023) Share Capital Retained Eamings Dividends Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Freight out Expense Advertising Expense Salaries and Wage Expense Utilibes Expense Insurance Expense Depreciation Expense Total Debit $10,500 15,000 30,000 2,400 160,100 Credit $35,000 6,000 17,000 100,000 49,000 16,000 319,400 14,000 7,500 155,000 4,000 22,000 72,000 3,300 3,600 11,000 $526,400 $526,400 Required: a. Using the Adjusted Trial Balance above, prepare the following statements in proper form: i. Income Statement il. Retained Earnings Statement . A classified Statement of Financial Position 8 Marks 3 Marks 9 Marks 5 Marks b. Journalize the necessary closing entries. c. Compute the following ratios, stating what each ratio indicates about All Star Apparel: i. Current Ratio H. Inventory Turnover (use Inventory instead of Avg. Inventory) ilii. Gross Profit Rate iv. Profit Margin v. Debt to Total Assets 3 Marks each d. The same intem who questioned the need for adjusting entries, does not understand the purpose of closing entries. Advise the intem. 5 Marks