Tees R Us Classified Balance Sheet As at January 31, 2021 , Assets Cash $35,600 $16,870 $12,500 $ $4,400 69,370 Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Long-Term Assets Equipment Accumulated Depreciation Total Assets 162,000 -52,000 110,000 $179,370 Liabilities Current Liabilities Accounts Payable Unearned Revenue Salaries Payable Current Portion of Bank Loan Total Current Liabilities Non-Current Liabilities Non-Current Portion of Bank Loan Total Liabilities $12,000 $9,000 $5,700 $11,160 $37,860 23,840 $61,700 Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity Total Liabilities & Equity 81,000 36,670 117,670 $179,370 Required: 3)Using the balances of the General Ledger accounts as of Feb. 28, complete the financial statements. 1) Prepare a multistep income statement. Tees R Us R Income Statement For the Month Ended February 28, 2021 Sales Revenue Sales Discounts Net Sales Cost of Goods Sold Gross Profit Operating Expenses Employee Benefits Expense Depreciation Expense Insurance Expense Office Supplies Expense Rent Expense Salaries Expense Bank Charges Expense Shipping Expense Cash Over & Short Total Operating Expenses Operating Income Other Income and Expenses Interest Expense Interest Revenue Total Other Income and Expenses Net Income 2) Prepare a calculation of retained earnings Calculation of Retained Earnings For the Month Ended February 28, 2021 Retained Earnings, Beginning Add: Net Income Less: Dividends Retained Earnings, End 3) Prepare a classified balance sheet. Assume that $ of the bank loan will be paid off in the 12 months. Tees R Us Balance Sheet As at February 28, 2021 Assets Current Assets Cash Petty Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Long-Term Assets Equipment Accumulated Depreciation Total Assets Liabilities Current Liabilities Accounts Payable CPP Payable El Payable Income Tax Payable Salaries Payable Unearned Revenue Current Portion of Bank Loan Total Current Liabilities Non-Current Liabilities Non-Current Portion of Bank Loan Total Liabilities Shareholders' Equity Common Shares Retained Earnings Total Liabilities & Shareholders' Equity h)Based on the information above, answer the following questions. a) Calculate the current ratio as at February 28, 2021 b) Does Tees R Us have a good or bad current ratio? Explain why or why not. #DIV/0! Calculate the inventory days on hand ratio as at February 28, 2021. (Since this is for the month, do not multiply by 365 in the formula. Instead multiply by 31 days.) d) Last month, the inventory days on hand ratio was 39 days. Has the ratio improved? Why or why not? e) Calculate the debt to equity ratio as at February 28, 2021. f) Calculate the gross profit margin as at February 28, 2021. g) Last month, the gross profit margin percentage was 70%. What could have caused this decrease in gross margin percentage? h) Calculate the inventory turnover as at February 28, 2021. i) If inventory turnover last month was 0.81, is the company holding on to inventory for a longer or shorter period of time? Tees R Us Classified Balance Sheet As at January 31, 2021 , Assets Cash $35,600 $16,870 $12,500 $ $4,400 69,370 Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Long-Term Assets Equipment Accumulated Depreciation Total Assets 162,000 -52,000 110,000 $179,370 Liabilities Current Liabilities Accounts Payable Unearned Revenue Salaries Payable Current Portion of Bank Loan Total Current Liabilities Non-Current Liabilities Non-Current Portion of Bank Loan Total Liabilities $12,000 $9,000 $5,700 $11,160 $37,860 23,840 $61,700 Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity Total Liabilities & Equity 81,000 36,670 117,670 $179,370 Required: 3)Using the balances of the General Ledger accounts as of Feb. 28, complete the financial statements. 1) Prepare a multistep income statement. Tees R Us R Income Statement For the Month Ended February 28, 2021 Sales Revenue Sales Discounts Net Sales Cost of Goods Sold Gross Profit Operating Expenses Employee Benefits Expense Depreciation Expense Insurance Expense Office Supplies Expense Rent Expense Salaries Expense Bank Charges Expense Shipping Expense Cash Over & Short Total Operating Expenses Operating Income Other Income and Expenses Interest Expense Interest Revenue Total Other Income and Expenses Net Income 2) Prepare a calculation of retained earnings Calculation of Retained Earnings For the Month Ended February 28, 2021 Retained Earnings, Beginning Add: Net Income Less: Dividends Retained Earnings, End 3) Prepare a classified balance sheet. Assume that $ of the bank loan will be paid off in the 12 months. Tees R Us Balance Sheet As at February 28, 2021 Assets Current Assets Cash Petty Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Long-Term Assets Equipment Accumulated Depreciation Total Assets Liabilities Current Liabilities Accounts Payable CPP Payable El Payable Income Tax Payable Salaries Payable Unearned Revenue Current Portion of Bank Loan Total Current Liabilities Non-Current Liabilities Non-Current Portion of Bank Loan Total Liabilities Shareholders' Equity Common Shares Retained Earnings Total Liabilities & Shareholders' Equity h)Based on the information above, answer the following questions. a) Calculate the current ratio as at February 28, 2021 b) Does Tees R Us have a good or bad current ratio? Explain why or why not. #DIV/0! Calculate the inventory days on hand ratio as at February 28, 2021. (Since this is for the month, do not multiply by 365 in the formula. Instead multiply by 31 days.) d) Last month, the inventory days on hand ratio was 39 days. Has the ratio improved? Why or why not? e) Calculate the debt to equity ratio as at February 28, 2021. f) Calculate the gross profit margin as at February 28, 2021. g) Last month, the gross profit margin percentage was 70%. What could have caused this decrease in gross margin percentage? h) Calculate the inventory turnover as at February 28, 2021. i) If inventory turnover last month was 0.81, is the company holding on to inventory for a longer or shorter period of time