Question 1 Tooner Corporation Income Statement For Year ended December 31, 2020 Tooner Corporation Balance Sheet As at December 31, 2020 $ 805,000 Assets $ Sales Cost of goods sold: Inventory, Dec 31, 2010 Purchases Goods available for sale Inventory, Dec 31, 2011 Cost of good sold Gross profit from sales Operating expenses Operating income Interest expense Income before taxes Income taxes Net income 62,800 500,700 563,500 49,200 514,300 290,700 227,800 62,900 9,500 53,400 15,720 37,680 Cash Temporary investments Accounts receivable, net Notes receivable Inventory Prepaid expenses Plant assets, net Total assets 18,500 20,400 43,400 8,800 49,200 4,800 272,100 417,200 $ $ $ Liabilities and Owner's Equity Accounts payable Accrued wages payable Income taxes payable Long term note payable Common shares, 160,000 Retained earnings Total liabilities and shareholder's equity 40,700 5,200 5,800 95,000 160,000 110,500 417,200 $ Assume all sales were on credit. On the December 31, 2019 balance sheet, the assets totalled $360,600, common shares were $160,000 and retained earnings were $89,700 REQUIRED: Calculate the following: (a) Current ratio (b) Acid-test ratio (c) day's sales uncollected (d) merchandise turnover (e) days' sales in inventory (f) ratio of pledged assets to secured liabilities (g) times interest earned (h) profit margin (i) total asset turnover 6) return on total assets (k) return on common shareholder's equity Analysis component: Identify whether the ratio's calculated above compare favourably to the industry averages below: 1.6:1 1.1:1 16 times 21 days Current ratio Acid-test ratio Accounts receivable turnover Day's sales uncollected Merchandise turnover Day's sales in inventory Total asset turnover Accounts payable turnover Debt ratio Equity ratio Pledged assets to secured liabilities 5 times 70 days 2.3 times 4 times 35% 65% 1.4:1 Times interest earned Profit margin Gross profit ratio Return on total assets Return on common shareholder's equity Book value per common share Book value per preferred share Basic earnings per share Price earnings per share Dividend yield 50 times 14% 18% 20% 32.70% $8.63 $15.00 $1.79 $18.20 $0.35