I included my answer to Problem 1 because I just need the solution to problem 2

PROBLEM 1: Presented below are the income statement and balance sheet of Windsor, Inc: Income Statement - 2020 Sales $100 40 60 7 Cost of goods sold Gross profit Operating expense Interest expense Taxes Gain on sale of equipment Loss on sale of investment 4 6 4 (1) Total expenses 20 Net income 40 Balance Sheet 2020 2019 Cash $10 $2 12 10 14 20 Accounts receivable Inventory Prepaid rent Investments 6 4 6 10 20 15 Equipment Accumulated depreciation Total assets (8) (6) 60 55 Accounts Payable 4 3 Taxes payable 3 10 Bonds payable 10 4 Common stock 30 28 Retained earnings 13 10 Total 60 55 Additional Information A. Sold investment that cost $4 for $3. B. Average shares of stock outstanding was $10. C. Market price of a share of common stock was $20. D. Equipment costing $5 with accumulated depreciation of $3 was sold for $6. CONTINUED Required: Prepare a statement of cash flows using the indirect method for 2020. Statement of Cash Flow statement for year ended 2020 Amount $ Cash Flow from operating activities Net Income 40 Adjustments to arrive at cash flow from operations: Depreciation Expense 5 Gain on sale equipment -4 Loss on sale of Investment 1 Increase in Accounts receivable -2 =10-12 Decrease in Inventory 6 =20-14 Increase in Prepaid Rent -2 =4-6 Increase in accounts payable 1 =4-3 Decrease in taxes payable -7 = 3-10 Net Cash provided by operating activities 38 Cash flows from investing activities Sale of Investment 3 Sale of Equipment 6 Purchase of Equipment -10 =20+5-15 Net Cash used by Investing activities -1 Cash flows from financing activities Proceeds from issue of bonds 6 =10-4 Issue of Common Stock 2 =30-28 Cash Dividends Paid -37 =13-40-10 Net Cash used by financing activities -29 Net increase(decrease) in cash 8 Cash at beginning of Year 2 Cash at End of year 10 PROBLEM 2: Using the information from Problem 1, calculate the following ratios for 2020: A. Acid test. B. Average sales period. C. Average collection period. D. Times interest earned. E. Debt to equity ratio. F. Price earnings ratio. G. Return on equity