Required:

1. Prepare a full statement of cash flows using the indirect method for the year ended December 31, 2020.

2. Prepare the operating section using the direct method for the year ended December 31, 2020

3. Prepare a vertical analysis on the income statement for both years

4. Prepare a vertical analysis on the balance sheet for both years

5. Prepare a horizontal analysis on the income statement

6. Prepare a horizontal analysis on the balance sheet

7. in regards to the statement of cash flow, comment on

-a. quality of earning

-b. areas of opportunity to improve

8. calculate the following ratios for 2020 and 2019 and comment on each

- working captial

- current ratio

- quick ratio,

- ratio of fixed assets to long-term liabilities

- ratio of liabilities to equiity

- gross margin

- operating margin

- profit margin

Calculate the following ratios for 2020 and comment on each

- AR turnover

- Number of days's sales on receivable

- inventory turnover

- Number of days' sales in inventory

- ratio of sales to assets

- rate earned on total assets

Fisher Inc. Balance Sheet As of December 31, 2020 2019 Assets Cash Accounts receivable Inventory Long-term investments Equipment Accumulated depreciation Total assets $ $ $ $ 3,250,000 (750,000) $ $ 32,500 750,002 5,235,400 75,000 $ $ $ $ 2,500,000 (650,000) $ $ 125,000 650,750 4,783,000 150,000 $ $ $ $ 2,500,000 8,592,902 1,850,000 7,558,750 Liabilities and Equity Accounts payable Operating expenses payable Notes payable-long term Capital, Fisher Total liabilities and equity $ $ $ $ 4,250,000 326,890 900,000 3,116,012 8,592,902 $ $ $ S $ 3,750,000 298,500 1,200,000 2,310,250 7.558,750 $ Fisher Inc. Income Statement For the Years ended December 31, 2020 2019 $ Sales COGS Gross profit lo 16,500,000 14,950,750 1,549,250 $ $ $ 17,980,000 16,361,980 1,618,020 $ Operating expense Depreciation expense Operating income $ 650,000 100,000 799,250 UUU 575,000 90,000 953,020 $ Other revenue an expenses Gain on sale of long-term investment $ 120,000 $ 35,000 Net Income $ 919,250 $ 988,020 Required: 1 Prepare a full statement of cash flows using the indirect method for the year ended December 31, 2020 2. Prepare the operating section using the direct method for the year ended December 31, 2020 3 Prepare a vertical analysis on the income statement for both years 4 Prepare a vertical analysis on the balance sheet for both years 5 Prepare a horizontal analysis on the income statement 6 Prepare a horizontal analysis on the balance sheet 7 in regards to the statement of cash flow, comment on a quality of earning b areas of opportunity to improve 8 Calculate the following ratios for 2020 and 2019 and comment on each: Working capital Current ratio Quick ratio Ratio of fixed assets to long-term liabilities Ratio of liabilities to equity Gross margin Operating margin Profit margin Calculate the following ratios for 2020 and comment on each: AR turnover Number of days's sales in receivable Inventory turnover Number of days' sales in inventory Ratio of sales to assets Rate earned on total assets