The comparative statements of Ayayai Interiors Ltd. are presented as follows: 2020 $1,811,500 1,005,500 AYAYAI INTERIORS LTD. Income Statement For the Year Ended December 31 2021 Net sales $2,119,750 Cost of goods sold 1,163,000 Gross profit 956,750 Selling and administrative expenses 504,000 Income from operations 452,750 Other expenses and losses Interest expense 16,500 Income before income taxes 436,250 806,000 499,000 307,000 18,000 289,000 Income tax expense 109,775 87,000 Profit $326,475 $202,000 AYAYAI INTERIORS LTD. Balance Sheet December 31 Assets 2021 2020 2019 Current assets Cash $90,000 $129,100 $110,200 Accounts receivable 187,200 108,000 103,200 111,500 Inventory 219,800 136,000 Total current assets 497,000 373,100 324,900 Property, plant, and equipment (net) 645,700 600,300 519,300 Total assets $1,142,700 $973,400 $844,200 $1,142,700 $973,400 $844.200 $284.175 $161,000 $134,400 49,000 41,500 40,000 333,175 174.400 Total assets Liabilities and Shareholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 202,500 195,000 190,000 200,000 523,175 397,500 374,400 280,000 280,000 300,000 339,525 295,900 169,800 619,525 575,900 469,800 $1,142,700 $973.400 $844.200 Additional information: 1. All sales were on account. 2. Weighted average common shares in 2021 were 50,000 and in 2020 were 52,000. 2021 2020 1. Gross profit margin 45.14 % 44.51 % 2. Profit margin 15.4 % 11.21 % 3. Earnings per share $ 6.52 $ 3.88 4. Receivables turnover 14.3 times 17.2 times 5. Collection period 25.5 days 21.2 days 6. Inventory turnover 6.5 times 8.1 times 7. Days sales in inventory 55.8 days 44.9 days 8. Return on common shareholders equity 54.6 % 38.6 9. Return on assets 32.10 % 32.56 % 10. Current ratio 1.49 1.84 11. Acid-test ratio 0.83 1.17 12. Asset turnover 1.71 times 1.99 times 13. Debt to total assets 45.8 % 40.8