The following information is available for DEF Company: DEF Company Statement of Financial Position For the year ended December 31 2020 2019 Assets: Current Assets: Cash A/R Inventory Prepaid Expenses Total Current Assets Non-Current Assets: PPE, net Intangible Assets Total Non-Current Assets Total Assets $16,500 $15,950 $17,600 $19,800 $15,400 $13,200 $1,100 $550 $50,600 $49,500 $112,200 $105,600 $5,500 $4,400 $117,700 $110,000 $168,300 $159,500 Liabilities: Current Liabilities Accounts Payable Short Term Debt Total Current Liabilities Non-Current Liabilities: Long Term Debt Total Liabilities Equity: $11,000 $7,700 $19,800 $16,500 $30,800 $24,200 $55,000 $59,400 $85,800 $83,600 $6,600 $6,600 $75,900 $69,300 $82,500 $75,900 $168,300 $159,500 Equity: Common Shares Retained Earnings Total Equity Total Liabilities and Equity DEF Company Statement of Earnings For the year ended December 31, 2020 Sales (90% on credit) Cost of goods sold Gross margin Selling and Distribution expenses Administrative expenses Depreciation expense Operating income Interest expense Net income before tax Tax expense Net Income $110,000 $66,000 $44,000 $15,950 $12,100 $4,400 $11,550 $550 $11,000 $2,200 $8,800 Required: a) Fill in the missing information in the chart provided. Show details of your calculations in the space provided. For the Trend column only use "improving" or worsening or stable for your answer. (round to 4 decimal places) (11 marks) b) Provide an overall assessment of the company's liquidity and leverage. In your assessment, explain the relationship between liquidity and leverage. Identify which ratios you used to determine your assessment. (4 marks) a) Ratio 2020 2019 Trend (Improving or Worsening) Return on equity 10.24% Net profit margin 8% 6% Gross profit margin 40% Quick (Acid test) ratio 1.4773 Inventory turnover 4.1342 Receivable turnover 5.1254 Current ratio 1.6429 2.0455 Long term debt to equity 0.6667 0.7826 Debt ratio 0.5098 0.5241 Total Asset Turnover 0.5983 b)