Problem #1 (30 marks) Prepare a ratio analysis for Halifax Sports Inc. using an excel spreadsheet. The firm has 2 million shares authorized and has 1 million shares issued and outstanding. 1 Halifax Sports Inc. Balance Sheet($000) Halifax Sports Inc. Balance Sheet($000) ASSETS 2020 2019 2020 2019 Current Assets Sales Revenues 160,000 125,000 Cash 485 9,000 Cost of Goods Sold 96,000 64,000 75,000 50,000 Short-term Investments 10 Cert. of Deposit 5 Contribution Margin Operating Expenses Salaries Accounts Receivable 16,000 11,000 11,000 Inventory 16,000 12,500 12,500 29,000 50,500 20,000 45,500 62,000 26,000 Total Current Assets Wages General/Admin Amort/Depr. 10,000 10,000 10,000 4,500 Land Buildings and Equipment 100,000 70,000 Interest 6.100 3,000 Accumulated Amortization 38,000 28,000 Earnings B4 Taxes 10,900 9,000 Net Plant & Equipment 88,000 62,000 Taxes 5,450 4,500 Earnings After tax 5,450 4,500 TOTAL ASSETS 150,000 112,500 LIABILITIES and SHAREHOLDERS' EQUITY Current Liabilities Accounts Payable 22,000 10,500 Bank Note 40,000 10,000 Taxes Payable 2,500 2,000 Accrued Expenses 4,500 5,000 Total Current Liabilities 69,000 27.500 Long Term Debt First Mortgage Bonds 20,000 22,000 Debenture Bonds 2,950 6,750 Total Liabilities 22,950 28,750 Equity Common Shares 31,500 31,500 Retained Earnings 26,550 24,750