Question B4 (10 marks) Using the financial information provided below, calculate the following ratios for 2021:...

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Question B4 (10 marks) Using the financial information provided below, calculate the following ratios for 2021: 1. Current ratio 2. Gross profit ratio 3. Quick ratio 4. Inventory turnover 5. Days sales in inventory 2021 2020 Cash 1000 1500 Prepaid Supplies 500 750 Accounts receivable 22200 11750 Sales 2021 250000 2020 225000 Allowance for Doubtful Sales discounts 2500 100 Accounts -200 -100 Cost of goods sold 120000 110,000 Inventory 12000 16000 Salaries expense 45000 45000 Equipment 25000 25000 Advertising expense 5000 1000 Buildings 50000 50000 Maintenance expense 4500 4500 Land 10000 10000 Interest expense 250 0 Total Assets 120500 114900 Bad debt expense 750 150 Depreciation expense 500 500 Accounts payable 3500 1500 Supplies expense 900 1200 Unearned revenue 500 0 70600 62550 Salaries payable 4000 1000 Mortgage payable 45000 50000 Owner's equity 67500 62400 Total liabilities and equity 120500 114900 Question B4 (10 marks) Using the financial information provided below, calculate the following ratios for 2021: 1. Current ratio 2. Gross profit ratio 3. Quick ratio 4. Inventory turnover 5. Days sales in inventory 2021 2020 Cash 1000 1500 Prepaid Supplies 500 750 Accounts receivable 22200 11750 Sales 2021 250000 2020 225000 Allowance for Doubtful Sales discounts 2500 100 Accounts -200 -100 Cost of goods sold 120000 110,000 Inventory 12000 16000 Salaries expense 45000 45000 Equipment 25000 25000 Advertising expense 5000 1000 Buildings 50000 50000 Maintenance expense 4500 4500 Land 10000 10000 Interest expense 250 0 Total Assets 120500 114900 Bad debt expense 750 150 Depreciation expense 500 500 Accounts payable 3500 1500 Supplies expense 900 1200 Unearned revenue 500 0 70600 62550 Salaries payable 4000 1000 Mortgage payable 45000 50000 Owner's equity 67500 62400 Total liabilities and equity 120500 114900