Use the following information for questions 19 to The comparative summary statement of financial position for Gnat Ltd. as at December 31 follows: Cash and cash equivalents Trade receivables Inventories held for resale Buildings and equipment, net 2021 $ 26,000 53,000 41,000 287,000 $407,000 2020 $ 90,000 62,000 29.000 240.000 $421.000 Total $ 27,000 88.000 2,500 7,000 100,000 196,500 $421.000 $ 16,000 Trade payables Bank loan 0 Interest payable 4,000 Income taxes payable 5,000 Contributed capital (common shares) 122,000 Retained earnings 260,000 Total $407.000 Income statement information for Gnat Ltd. for 2021 is shown below: Sales Cost of sales Operating expenses Operating income Interest expense Gain on sale of equipment Pre-tax earnings Income tax expense Net earnings $ 850,000 580,000 135.000 135,000 5,000 22,000 152.000 64.000 $ 88,000 Additional information 1. A building was acquired for cash during 2021 Also during 2021 equipment with a cost of $73,000 and accumulated depreciation of $15,000 was disposed of in exchange for cash. 2. A $10,000 common stock dividend was declared and issued in 2021. 3. Sales are 80% on credit, and 20% for cash. 4. Trade payables relate only to transactions with suppliers of merchandise inventory. 5. The bank loan matures in 2021 and was repaid in full. 6. The income tax rate is 42.1% 7. Operating expenses include depreciation amounting to $65,000 quiz/secured ning ure 29.40 The inventory turnover (number of times) for 2021 is closest to Select one: a. 24 Ob 14 Oc 12 da nure 3040 The fixed asset turnover ratio (number of times) for 2021 is closest to Select one: O a. 3 O 6.4 o c. 2 O d. Less than 1 Unsure 31 of 40 The total asset tumover ratio (number of times) for 2021 is closest to Select one: O a 1 Ob 2 O 03 O 0.4 Unsure Prev Page 2 3 4 5 6 7 8 9 10 11 Next Page Concordia nih