Question 9 (6 Marks) Below is the 2018 and 2019 Statement of Financial Position and Statement of Income for Meadow Farms Inc. Dec. 31, 2019 Dec. 31, 2018 Cash $300,000 $150,000 Short term investment 900,000 650,000 Accounts receivable 1,000,000 950,000 Inventory 200,000 250,000 2,400,000 2,000,000 Land 600,000 400,000 Building, at cost 900,000 700,000 Building, accumulated depreciation (300,000) (250.000) 1.200.000 850,000 Total Assets 3,600,000 2,850,000 Accounts payable 450,000 350.000 Long-term debt 615,000 400,000 Common shares 1,000 1,000 Retained earnings 2,534.000 2.099,000 Total shareholder's equity 2,535,000 2.100,000 Total Liabilities and Equity 3,600,000 2,850,000 Net Sales $4,000,000 $5,700,000 Cost of goods sold 3,000,000 5,000,000 Gross Profit 1,000,000 700.000 Depreciation expense 50,000 75,000 Operating expenses 280.000 290,000 330,000 365,000 Net Income before taxes $670,000 $335,000 Required: From the data above, calculate the following ratios. (two decimal places and show calculations for part marks) A formula sheet is found at the back of the exam: (1 mark each) 2019 2018 Gross Profit Percentage Current Ratio Debt to Equity Ratio