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The comparative Balance Sheets and Income Statement of a Corporation appear below. A Corporation Income Statement for the Year ended December 31, 2020 2020 $ Net Sales 884,000 Cost of Goods Sold (508.000) Gross Margin 376,000 Operating Expenses (including Depreciation Expense of $20,000) (204.000) Income from Operations 172,000 Interest Expense (24.000) Income before Income Taxes 148,000 Income Taxes (28,000) Net Income 120.000 A Corporation Comparative Balance Sheets as at December 31, 2020 and 2019 2020 2019 Assets: Cash 24,000 40,000 Account Receivable (Net) 178,000 146,000 Inventory 240,000 180,000 Prepaid Expenses 10,000 14,000 Building 400,000 Accumulated Depreciation (20,000) Total Assets 832.000 380,000 Liabilities & SHE: Account Payable 74,000 96,000 Income Taxes Payable 6,000 4,000 Mortgage Payable 400,000 Common Stock 200,000 200,000 Retained Earnings 152.000 80,000 Total Liabilities & SHE 832.000 380.000 Required: (a) Show, by using the data given, how you would calculate ratios that could be used to measure (1) Inventories; (2) Accounts Receivable; (3) Accounts Payable levels during 2020 (b) State what caused a change (Increase or Decrease) in Cash balance, making a Statement of Sources and Uses of Cash for 2020; (c) Calculate Free Cash Flow for 2020. You will need to make a Statement of Cash Flows for 2020 (the Indirect method); (d) Calculate the Operating Cash Cycle and comment on data obtained; le) Answer the Owner's question: "You show that I earned $120,000 in 2020, but I have only $24,000 in the bank. I bought a building on a mortgage and paid cash dividend of $48,000, but where is my money?! Why I don't have enough cash to pay the bills this month

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