The Good Food Company has been a business in Sault Ste. Marie for 20 years. The following financial statement that includes the balance sheet and income statement is as follows for year 2022:

Income Statement For 2022 The Good Food Company

Sales$5,000,000

Cost of Goods Sold$2,800,000

Gross Profit$2,200,000

Selling & Administration Expenses$1,600,000

Depreciation Expense$200,000

Operating Income$400,000

Interest Expense$50,000

Tax Expense$100,000

Net Income ?

Balance Sheet For 2022 The Good Food Company

Cash$50,000

Accounts Receivable$560,000

Inventory$200,000

Fixed (Long Term) Assets$1,000,000

Accumulated Depreciation($200,000)

Total Assets ?

Account Payables$460,000

Bank Mortgage$500,000

Equity ?

Total Liabilities and Equity?

Required

a) Calculate the net income, then the total current assets, fixed (long term) assets, total assets, current liabilities, long term liabilities, equity, and total liabilities & equity.

b) Calculate the following ratios and after each ratio calculation provide a comment with respect to the financial strength of the ratio:

The current and quick ratio.

The total debt to equity ratio.

The A/R (accounts receivable) turnover and A/R collection period. The inventory turnover and the inventory holding period. The company offers all customers 30 days to pay and the company prefers to have 20 days of inventory on hand. Use sales in your calculation.

Please explain briefly with full explanation and calculations.