QUESTION 5 (15 marks) Jumbo Corporation had the following adjusted trial balance on December 31, 2021: JUMBO CORPORATION Adjusted Trial Balance December 31, 2021 Debit Credit Cash $18,018 Accounts receivable 27,604 Inventory 40,135 Prepaid insurance 1,336 Equipment 182,524 $65,150 Accumulated depreciation - equipment Furniture 62,596 Accumulated depreciation - furniture 23,720 Accounts payable 9,819 Unearned sales revenue 1,132 Bank loan 163,518 Ordinary shares 50,000 Retained earnings, January 1, 2021 117,400 Dividends 106,000 Sales revenue 622,063 Other income 36,048 Cost of sales 290,421 Rent expense 123,000 Salaries and wages expense 122,328 Insurance expense 16,600 Interest expense 23,981 Marketing expense 6,917 Utilities expense 31,534 5,900 Depreciation expense - equipment Depreciation expense - furniture 1,600 Other expenses 19,533 Income taxes expense 8,823 $1,088,850 $1,088,850 ======= Required: (Show all calculations and round ALL answers to 2 decimal places.) The following ratios were obtained from Mini Corporation, a competitor of Jumbo Corporation, for the year ended on December 31, 2021: Gross profit rate 38.12% 0.8% Profit as a percentage of sales revenue Return on equity 18.30% Calculate the above ratios for Jumbo Corporation on December 31, 2021, and comment on Jumbo's profitability by comparing to the ratios of Mini Corporation. Assume the average shareholders' equity of Jumbo Corporation for the year ended 2021 was $67,157. 8