please help question 27

om prvem ABC HARDWARE LTD. Comparative Statement of Earnings For the Years Ended December 31, 2020 and 2019 Net sales Cost of sales Gross profit Operating expenses Earnings from operations Interest expense Earnings before income tax Income tax expense Net Earnings 2020 $ 351,000 201,000 150,500 65,000 85,500 26,000 59,500 19.000 $ 40,500 2019 $ 310,000 155,000 155,000 71,000 84,000 20,000 64,000 22,500 $ 41,500 ABC HARDWARE LTD. Comparative Statement of Financial Position December 31, 2020 and 2019 (and selected account balances at December 31, 2018) 2020 2019 2018 $ 20,000 1,000 116,000 Current assets: Cash Short-term investments Accounts receivables, net Inventories Prepaid expenses Total current assets Property, plant, and equipment, net Total assets $ 15,000 0 62,500 86,000 149,000 6,000 292,000 154,500 446,500 $ 20,000 5,000 80,500 137,000 9,000 251.500 143,500 395,000 351,500 Total current liabilities Long-term liabilities Total liabilities Preferred shares Common shares Retained earnings Total liabilities and shareholders' equity $ 141,000 114,500 255,500 25,000 80,000 86,000 $ 138,500 121,000 259,500 25,000 65,000 45,500 65,000 19,000 $ 446,500 $ 395,000 Other information: a. The market price of ABC Hardware Ltd. common shares was $19.00 on December 31, 2020 and $31.00 on December 31, 2019 anaana ARA Common shares 80,000 65.000 65,000 Retained earings 86.000 45,500 19,000 Total liabilities and shareholders' $ 446,500 $ 395.000 equity Other information: a. The market price of ABC Hardware Ltd, common shares was $19.00 on December 31, 2020 and $31.00 on December 31, 2019 b. The weighted average number of common shares outstanding was 15,000 during 2020 and 12.000 during 2019. c. All sales are on credit. d. Cash provided by operating activities (before interest and tax payments) was $78,000 in 2020 and $80,000 in 2019. In addition, the company paid interest of $26,000 in 2020 and $20,000 in 2019, 21 Caluinta ARC Hardware It's nuick ratin for 2020 26. Calculate ABC Hardware Ltd.'s times interest earned ratio for 2020 and 2019 respectively. Select one: a. 1.56 and 2.08 b.2.29 and 3.20 c. 3.29 and 4.20 d. 3.00 and 4.00 e. None of the above ratios. 27. What is ABC Hardware Ltd.'s return on equity for 2019? Select one: O a. 24.8% O b. 37.8% C. 30.6% d. 42.7% O e. None of the above percentages. 28. A company's return on equity (ROE) is useful in Select one: O a assessing how indebted it is. b. assessing how liquid it is based on shareholders investment in the company. O c. giving a clear picture of how investors view the company. Od assessing its profitability based on shareholders investment in the company. e assessing its profitability based on shareholders' and creditors' investments in the company, 29. Calculate ABC Hardware Ltd.'s Price/earnings ratio for 2020. Select one: a. 9.18 b. 8.96 c. 7.04 d. 6.86 e. None of the above ratios