Use the data above. For the most recent year (2020) calculate the following ratios.

1. Current ratio

2. Inventory turnover

3. Rate of return on total assets

4. Accounts receivable turnover (assume all sales are on account)

5. Debt ratio.

Required

Prepare a cash flow statement for 2020 with clear documentation for each section of the statement. Use either the indirect method.

Additional information

1. There were no write-offs of delinquent accounts during the year.

2. A long-term asset was sold for 175.

Nrokle sah Company Comparative Balance Sheets and Income Statement For the Years 2019 and 2020 BALANCE SHEETS 2020 Assets 2019 Cash 400 285 Accounts receivable 330 300 Allowance for bad debts (50) (25 Inventory 150 135 Land 415 500 Buildings 285 255 Accumulated depreciation-buildings (75) (95) $1,455 $1,355 Total assets Liabilities & Owners Equity Liabilities Accounts payable 340 305 Wages payable 70 80 Dividends payable 35 25 Taxes payable 30 45 Long-term Bonds payable 100 100 Premium on bonds payable Total liabilities 582 565 Owners it Common stock 670 600 Retained earnings 203 190 Total owners' equity 873 790 Total liabilities & owners' equity $1,455 $1,355 INCOME STATEMENT (2020) Revenue $l 700 Cost of goods sold 90 Gross margin 800 operating expenses Wage expense $165 Depreciation expense 60 Bad debt expense 25 Bond interest expense Total operating expenses 27 Net operating income 53 Gain on sale of building Net income before tax 570 Income tax 114 Net income after tax 329