Trek Inc. Statement of Earnings For the year ended December 31, 2020 (in thousands of dollars) Sales $1,640 Cost of sales (800) Gross profit 840 Depreciation expense (40) Selling and administrative expenses (400) Earnings from operations 400 Loss on sale of equipment Interest expense (24) Earnings before income taxes 370 Income tax expense (100) Net earnings 270 Dec. 31, 2019 Trek Inc. Summary Statement of Financial Position (in thousands of dollars) Dec. 31, 2020 Assets Cash $ 52 Short-term Investments 80 Account Receivable (net) 198 Inventories 240 Prepaid Expenses 3 Property, Plant and Equipment (net) 857 Total Assets $1,430 Liabilities and Shareholders' Equity Current Liabilities $ 240 Bonds Payable 200 Common Shareholders' Equity 990 Total Liabilities and Shareholders' Equity $1,430 $ 60 40 80 160 7 853 $1,200 $ 160 200 840 $1,200 Additional information: a) Trek, Inc. purchased new equipment in 2020 for $55,000. It also sold used equipment during the year. b) Trek Inc. had 84,000 common shares outstanding at December 31, 2019. On January 2, 2020, Trek Inc, sold and issued 6,000 additional common shares for a total amount of $60,000. There were no other transactions affecting common shares during 2020. The market price per share was $33 at December 31, 2020. Trek's boar of directors declared dividends at December 31, 2020, payable in January 2021. 32 The inventory turnover ratio for 2020 is equal to: Select one: a 4.00 b. 3.33 5.00 d. 8.20 The return on assets ratio for 2020 is equal to: Select one: a. 21.86% Ob 20.53% O c. 22.36% O d. 18.88%