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Validie IUI ADC Company ABC Company Statement of Financial Position For the year ended December 31 2020 2019 Assets: Current Assets: Cash A/R Inventory Prepaid Expenses Total Current Assets Non-Current Assets: PPE, net Intangible Assets Total Non-Current Assets Total Assets $15,000 $14,500 16,000 18,000 14,000 12,000 1,000 500 46,000 45,000 102,000 96,000 5,000 4,000 107,000 100,000 $153,000 $145,000 10,000 18,000 28,000 7,000 15,000 22,000 Liabilities: Current Liabilities Accounts Payable Short Term Debt Total Current Liabilities Non-Current Liabilities: Long Term Debt Total Liabilities Equity: Common Shares Retained Earnings Total Equity Total Liabilities and Equity 50,000 78,000 54,000 76,000 6,000 6,000 69,000 63,000 75,000 69,000 $153,000 $145,000 ABC Company Statement of Earnings For the year ended December 31, 2020 Sales (90% on credit) Cost of goods sold Gross margin Selling and Distribution expenses Administrative expenses Depreciation expense Operating income Interest expense Net income before tax Tax expense $100,000 60,000 40,000 14,500 11,000 4,000 10,500 500 10,000 2,000 Net Income $8,000 a) Fill in the missing information in the chart provided. Show details of your calculations in the space provided. For the "Trend" column only use "improving" or "worsening" or "stable" for your answer. (round to 4 decimal places) (11 marks) b) Provide an overall assessment of the company's liquidity and leverage. In your assessment, explain the relationship between liquidity and leverage. Identify which ratios you used to determine your assessment. (4 marks) Paragraph | BIUA, II O Quick (Acid test) ratio 1.4773 Inventory turnover 4.1342 Receivable turnover 5.1254 Current ratio 1.6429 2.0455 Long term debt to equity 0.6667 0.7826 Debt ratio 0.5098 0.5241 Paragraph

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