Statement of Financial Position December 31, 2019 December 31, 2020 $ $ Assets Current assets Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets 50,000 100,000 120,000 270,000 400,000 670,000 40,000 120,000 70,000 230,000 420,000 650,000 $ $ $ $ Liabilities and shareholders' equity Current liabilities Accounts payable Notes payable Total current liabilities Long-term debt Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 50,000 40,000 90,000 130,000 70,000 30,000 100,000 90,000 100,000 350,000 450,000 100,000 360,000 460,000 $ 670,000 $ 650,000 Statement of Comprehensive Income For the year ended December 31, 2020 $ Sales Cost of goods sold Depreciation expense EBIT Interest expense Earnings before taxes Income taxes (40%) Net income 200,000 120,000 30,000 50,000 5,000 45,000 18,000 27,000 $ a. You would like to evaluate the ability of the company to collect accounts receivable. Choose and calculate the most relevant ratio for year 2020. Show your work. b. You would like to understand how much return the company was generating on its assets. Choose and calculate the most relevant ratio for year 2020. Show your work. c. You would like to evaluate the ability of the company to use cash to cover its current liabilities. Choose and calculate the most relevant ratio for year 2020. Show your work