Statement of Financial Position

December 31

December 31Assets20202019Cash

$53,000$4,200Accounts receivable

89,40087,500Equipment

26,50021,000Less: Accumulated depreciation

(8,900)(10,700)Total

$160,000$102,000Liabilities and Shareholders' EquityAccounts payable

$20,000$10,000Common shares

100,00075,600Retained earnings

40,00016,400Total

$160,000$102,000

Net income of $36,300 was reported and dividends of $12,700 were declared and paid in 2020. New equipment was purchased, and equipment with a carrying value of $4,800 (cost of $11,700 and accumulated depreciation of $6,900) was sold for $8,200.

(a)

Calculate the current ratio and debt to total assets ratio as at December 31, 2019 and 2020. Calculate the free cash flow for December 31, 2020. (Round answers to 2 decimal places, e.g. 52.75.)