Question 5 - 7 marks - 10 minutes Elements of the Income Statement for Hofstadter Experiments Ltd, followed 2020 2019 2 Net Sales (all credit) $1,498,000 $1,200,000 Cost of goods solde 1,043,000 820,000 Net Income 91,000 76,500 Highlights of the Balance Sheet: Cash Temporary Investments Accounts receivable (net) Inventories Prepaid expenses Total current liabilities Total liabilities Total common shareholders' equity Required: (Round all answers to 2 decimal places). 2020 $90,500 75,000 115,000 264,000 5,500 210,000 310,000 829,500 2019 $64,700 60,000 120,000 283,000 5,300 243,000 443,000 787,500 a) Calculate the gross profit rate for both 2019 and 2020. b) Did the gross profit rate improve or worsen from 2019 to 2020? c) What was the Accounts Receivable Turnover ratio for 202074 d) Explain what Accounts Receivable Turnover is in your own words. e) What was the Return on Common Shareholders' Equity for 20207 1) What was the Current Ratio for 2020? B) is the current ratio calculated in f) adequate