Question Presented here are a Statement of Income and Retained Earnings and Comparative Balance Sheets for Madison Gardens Pty Ltd, which operates a national chain of sporting goods stores Statement of Income and Retained Earnings for the Year ended ended 31 December 2016 Net sales Cost of goods sold Gross profit 12000 Sellin eneral and admin expense 6000 Operating income 6000 280 5720 Interest expense Income tax expense Net income 3440 100 Preference dividends Income available to ordinary shareholders 500 Ordinary dividends To retained Earnings 2840 Retained Earnings /1/2016 Retained Earnings the end of the year 12000 Comparative Balance Sheets as at December 31 2016 2015 Cash 840 12500 2700 Accounts receivable 9000 Invento 8000 100 21440 Prepaid insurance 400 Total current Assets 17600 Land 4000 4000 Buildings & Equipment 12000 9000 Accumulated Depreciation Total long-term Assets Total Assets R33740 R 27600 Accounts Payable Taxes Payable 7300 4600 5000 4200 Notes Payable 2400 1600 200 14500 200 11000 Current portion of mort Total current Liabilities Mortgage Bond 1400 15900 1000 Total liabilities 12600 1000 Preference shares Ordinary shares 2000 2000 Retained earni 12000 15000 Total 17840 R33 740 Required A. Prepare a statement of cash flows for Madison Gardens Pty (Ltd) for the year ended December 31, 2016, using the indirect method in the Operating Activities section of the statement. B. Madison Gardens (Pty) Ltd's management is concerned with its short-term liquidity and its solvency over the long run. To help management evaluate these, compute the following ratios, rounding all answers to the nearest one-tenth of a percent: 1 Current ratio 2. Acid-test ratio 3. Cash flow from operations to current liabilities ratic 4 Accounts receivable turnover ratio 5.Number of days' sales in receivables 6 Inventory turnover ratio 7. Number of days' sales in inventory 8. Debt-to-equity ratio 9.Debt service coverage ratio 10 Cash flow from operations to capital expenditures ratio C. Comment on Madison gardens' liquidity and its solvency. What additional information do you need to fully evaluate the company