Question I (25 MARKS) Presented below is the condensed financial statements of Williams Enterprise Ltd. for the year ended December 31, 2019. Consolidated Statement of Earnings 2019 2018 For the years ended December 31, 2019 and December 31, 2018 $ millions except where otherwise indicated) Sales Cost of Merchandise Inventories Sold (note 9) Gross Profit Operating Expenses Selling and administrative expenses Depreciation and amortization $ 30,997 23,393 7,604 $ 30,735 23,539 7,196 5,680 5,402 655 589 6,335 5,991 1,205 1,269 273 269 996 936 297 269 Operating Income Interest expense and other financing charges (note 4) Earnings Before Income Taxes and Minority Interest Income Taxes (note 5) Net Earnings Before Minority Interest Minority Interest Net Earnings Net Earnings Per Common Share ($) (note 6) 699 667 18 11 $ 681 $ 656 Basic $ 2.45 2.39 $ $ Diluted $ 2.44 2.38 Consolidated Statement of Financial Position As at December 31, 2019 and December 31, 2018 ($ millions) 2019 2018 $ 932 776 735 614 724 774 2,112 2,114 121 130 4,626 9,123 1,029 Assets Current Assets Cash and cash equivalents (note 7) Short term investments Accounts receivable (note 8) Inventories (note 9) Prepaid expenses and other assets Total Current Assets Fixed Assets (note 10) Goodwill and Intangible Assets (notes 11) Security Deposits Other Assets (note 12) Total Assets Liabilities Current Liabilities Notes Payable Accounts payable and accrued liabilities Compensation to employees Income taxes payable (note 5) Long term debt due within one year (note 15) Total Current Liabilities 4,406 8,559 1,026 250 354 787 750 $ 15,919 $ 14,991 803 802 2,116 2,179 200 400 30 41 303 243 3,852 3,665 4,162 4,213 534 497 178 143 221 220 41 31 9,039 8,718 Long Term Debt (note 15) Other Liabilities (note 16) Future Income Taxes (note 5) Capital Securities (note 18) Minority Interest Total Liabilities Shareholders' Equity Common Share Capital (note 19) Retained Earnings Accumulated Other Compre. Inc (notes 2 and 22) Total Shareholders' Equity Total Liabilities and Shareholders' Equity 1,308 1,475 5,395 4,948 17 10 6,880 $ 15,919 6,273 $ 14,991 e) Evaluate the company's liquidity and financial flexibility by calculating and analysing the following ratios for 2019. (12 marks) (111) Accounts receivable turnover. (iv) Inventory turnover. (v) Return on assets