The following cash flow information is presented for the year ended December 31, 2019: Cash Flows from operating activities: Net income $ 500 Depreciation $2,800 Gain on sale of land (800) Decrease in accounts receivable 400 Decrease in inventory 500 Increase in accounts payable 800 50 Increase in wages payable Decrease in taxes payable (1,000) 2,750 Net cash flow from operating activities 3,250 Cash flows from investing activities: Land was sold for 1,800 Equipment was purchased for 3,500) Net cash used for investing activities (1,700) Cash flows from financing activities: Dividends declared and paid Common stock was sold for (4,350) 3,800 Net cash used for financing activities (550) (4,350) Cash flows from financing activities: Dividends declared and paid Common stock was sold for Net cash used for financing activities 3,800 _(550) Net Change in Cash $ 1,000 Presented below are selected ratio For Sun Electronics Corporation for the periods 2018, 2019, and the industry average. Financial Ratios Industry 2019 2018 Current Ratio 3.69 2.61 2 Acid-test Ratio 0.79 1.04 1.1 Cash ratio 0.55 0.84 1.00 Inventory turnover 2.77 14.87 4.1 Accounts Receivables Turnover 4.60 5.85 6.00 Debt ratio 40% 46% 40% Debt to Equity ratio 15% 17% 22% Return on total assets 8% 8.5% 8.7% Net profit margin 7.8% 7.8% 7% 13% Dividend pay out 11% 10% 16.6 18.5 19 Price earnings ratio Instructions Compute: The percentage of earning retained for the years 2018 and 2019 2018 79% 2019 77% 2018 29% 2019 27% 2018 59% 2019 57% 2018 89% 2019 87%