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Refer the following table. Airspace Technologies Inc. Comparative Balance Sheet Information November 30 (millions of $) 2020 2019 2018 Cash $ 68 $ 19 $
Refer the following table.
Airspace Technologies Inc. | ||||||
Comparative Balance Sheet Information | ||||||
November 30 | ||||||
(millions of $) | ||||||
2020 | 2019 | 2018 | ||||
Cash | $ | 68 | $ | 19 | $ | 31 |
Accounts receivable (net) | 117 | 55 | 43 | |||
Inventory | 199 | 235 | 195 | |||
Prepaid rent | 79 | 43 | 31 | |||
Plant and equipment (net) | 790 | 803 | 823 | |||
Accounts payable | 103 | 60 | 50 | |||
Accrued liabilities | 91 | 127 | 84 | |||
Income tax payable | 24 | 12 | 19 | |||
Preferred shares | 127 | 127 | 127 | |||
Common shares | 247 | 247 | 247 | |||
Retained earnings | 605 | 561 | 603 | |||
Airspace Technologies Inc. | |||||||
Income Statement | |||||||
For Year Ended November 30 | |||||||
(millions of $) | |||||||
2020 | 2019 | ||||||
Net sales | $ | 1,340 | $ | 1,124 | |||
Cost of goods sold | 491 | 419 | |||||
Gross profit | $ | 849 | $ | 705 | |||
Operating expenses: | |||||||
Depreciation expense | $ | 62 | $ | 62 | |||
Other expenses | 494 | 338 | |||||
Total operating expenses | 556 | 400 | |||||
Profit from operations | $ | 293 | $ | 305 | |||
Interest expense | 31 | 21 | |||||
Income tax expense | 38 | 40 | |||||
Profit | $ | 224 | $ | 244 | |||
Required: Calculate Airspaces liquidity and efficiency ratios for 2020 and 2019. (Round the final answers to 2 decimal places. Use 365 days a year.)
Analysis Component: Identify whether the change in each ratio from 2019 to 2020 was favourable or unfavourable.
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