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Q5. (12 marks) The following information is taken from Randy Technology's statements of financial position...

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Accounting

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Q5. (12 marks) The following information is taken from Randy Technology's statements of financial position at December 31, 2019 and 2020, and their income statement for calendar 2020 2020 2019 Assets: Cash $ 38,000 $ 42,000 Short Term investments, 25,000 Accounts receivable 118,000 22,000 Inventory. 151,000 42,000 Prepaid insurance. 16,000 19,000 Long-term investments 49,000 20,000 Equipment (net) 130,000 130,000 Land 33,000 33,000 Goodwill 45,000 45,000 Total assets. S 605,000 $ 353,000 Net income $ 52,250 Sales (all on credit) 295,000 Cost of goods sold 123,000 Interest expense... 15,600 Income tax expense 17,450 Tax rate = 26% Required: From the above information, calculate the following ratios for 2020: Ratio Amount 1.Inventory turnover 2. Accounts receivable turnover 3. Retum on assets ratio 4.Gross profit percentage ratio

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