QUESTION 2 PART A Presented below are the comparative Statement of financial position of Anne's Bakery Anne's Bakery Comparative Statement of Financial Position As at 31 December, 2019-2020 Non-current Assets Property, Plant and Equipment 2020 350,000 2019 320.000 Current Assets Cash Account receivable Inventory Prepaid expenses Total Assets 32,000 86,000 110,000 11,000 589,000 37,000 64,000 83,000 9,500 513,500 Equity Share capital Retained earnings 165,000 141,000 165.000 105.000 Non-current liability Long term note payable 98,000 102.000 Current liability Account payable Utility payable Total liability and Equity 130,000 55,000 589,000 82.000 59.500 513,000 2 Required: (a) Prepare a horizontal analysis for the year of 2020. Based on the result, comment on the performance of Anne's Bakery for the year of 2020. (15 marks) (b) Calculate the liquidity ratio below for both years and provide an analysis of the company liquidity for both years. 1. Current ratio 2. Account receivable turnover (14 marks)