Subject: Accounting Fundamentals [NOTE: Who will give me fast answer within 1 hour then you can solve my question. So I will give you positive rating. Thank You.]

Question # 03: Smile Company Balance Sheets December 31 Cash Accounts receivable (net) Inventory Plant assets (net) Total Accounts payable Notes payable Stockholders' equity Total 2020 2019 $15,000 $30,000 70,000 60,000 60,000 50,000 200.000 180,000 345,000 320,000 50,000 60,000 100.000 100.000 195,000 160.000 345,000 320,000 Additional information for 2020: i. Net income was $25,000. ii. Sales were $375,000. Sales returns and allowances amounted to $25,000. iii. Cost of goods sold was $198,000. Requirements: a. Make a vertical analysis of the balance sheet for year 2020 (show the necessary calculations). What does this vertical analysis explain to you? (05) b. Compute for 2020: Return on assets. Debt to assets ratio, Gross Profit ratio. Make comments on the ratios. You have to write the formulae of all the ratios.(05)