The following information is available for Abu Company Limited for the year ended May 31, 2021: Abu Company Limited Income Statement For the Year Ended May 31, 2021 Sales $888,900 Cost of goods sold 446,200 442,700 Amortization expense 48,000 Operating expenses 316,800 Total operating expenses 364,800 77,900 Interest expense 12,500 65,400 Income taxes 13,080 $52,320 Abu Company Limited Balance Sheet May 31, 2021 Liabilities Assets Accounts payable $108,900 Cash $48,250 Wages payable 4,200 Accounts receivable 122,500 Taxes payable 13,080 Inventory 99,780 126,180 270,530 Long term note payable 88,000 Long term investments 20,000 Property, plant & equipment 250,000 214,180 Less Accumulated depreciation (75,000) 195,000 Shareholder's equity Common shares 120,000 $465,530 Retained earnings 131,350 251,350 $465,530 Additional information: All sales were credit sales and normal terms are net 30 days from date of invoice. The company's accounts receivable at May 31, 2020 were $102,600. The inventory at May 31, 2020 was $79,800. The total assets at May 31, 2020 were $364,900. Shareholder's equity was $241,620 at May 31, 2020. Total shares outstanding at May 31, 2020 & May 31, 2021 were 12,000. The market price per share is $60. Required: 1. Calculate any 12 ratios from the list of ratios provided in Moodle & discussed in class. 2. Choose 4 of the ratios calculated in Part 1 & discuss. Limited industry averages & prior y Industry averages Abu Company Limited -2021 May 31, 2020 Gross profit margin ratio 51.0% 47.50% Return on sales (net profit margin) 6.5% 5% Times interest earned 10 8. Debt ratio .40 52 # of days sales in inventory 65 days 60 days Current ratio 2.6 1.5 Quick Ratio 1.60 1.15