.Solve this please

Use the information provided below toprepare a reconciliation of net income to cash flows from operating activities.Amounts to be deducted must be entered with a minus sign.Document your calculations.

Peoria Corporation Comparative Balance Sheets

December 31, 2018 and 2017December 3120182017AssetsCash52,00090,000Accounts Receivable180,000130,000Merchandise Inventory230,000200,000Prepaid Insurance15,00025,000Land750,000600,000Equipment700,000500,000Less: Caecum. Dnepr.(250,000)(200,000)Totals1,677,0001,345,000Liabilities & Stockholders' Equity Accounts Payable130,000148,000Wages Payable68,00063,000Income Taxes Payable90,000110,000Long-term Note Payable350,000300,000Common Stock550,000400,000Retained Earnings489,000324,000Totals1,677,0001,345,000Peoria Corporation Income Statement For the year ended December 31, 2018Sales1,250,000Cost of Goods Sold700,000Gross Margin550,000Depreciation Expense50,000Other Operating Expenses100,000Income from Operations400,000Other Income (Expenses):Interest Expense25,000Income before Income Taxes375,000Income Taxes Expense150,000Net Income225,000Additional information for 2018:A.Cash received from long-term borrowing50,000B.Cash paid for merchandise inventory748,000C.Cash paid for income taxes170,000D.Cash dividends paid60,000E.Cash paid for other operating expenses85,000F.Cash paid to purchase equipment200,000G.Cash received from customers1,200,000H.Cash received from issuing stock150,000I.Cash paid to purchase land150,000J.Cash paid for interest25,000K.Issued mortgage for land and building.200,000

Q2

Liquidity Ratios Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture of office supplies. To be able to assess the financial capabilities of the company, Mike has been given the company's financial statements for the 2 most recent years

epler Company Comparative Balance Sheets This Year Last Year

Assets

Current assets: Cash$ 50,000$100,000Accounts receivable, net300,000150,000Inventory600,000400,000Prepaid expenses25,00030,000Total current assets$ 975,000$680,000Property and equipment, net125,000150,000Total assets$1,100,000$830,000Liabilities and Stockholders' Equity Current Current liabilities: Accounts payable$ 400,000$290,000Short-term notes payable200,00060,000Total current liabilities$ 600,000$350,000Long-term bonds payable, 12%100,000150,000Total liabilities$ 700,000$500,000Stockholders' equity: Common stock (100,000 shares)200,000200,000Retained earnings200,000130,000Total liabilities and stockholders' equity$1,100,000

$830,000

Kepler Company Comparative Income Statements This YearLast Year Sales Sales$ 950,000$ 900,000Less: Cost of goods sold(500,000)(490,000)Gross margin$ 450,000$ 410,000Less: Selling and administrative expenses(275,000)(260,000)Operating income$ 175,000$ 150,000Less: Interest expense(12,000)(18,000)Income before taxes$ 163,000$ 132,000Less: Income taxes(65,200)(52,800)Net income$ 97,800$ 79,200Less: Dividends(27,800)(19,200)Net income, retained

When required, round your intermediate computations and answers to two decimal places. Assume that the ending balance of last year's accounts receivable and inventory is the average for last year computations. Assume 365 days per year.

Note:Round all answers to two decimal places.

1.Compute the following ratios for each year:

Current ratio.

Quick ratio

Receivables turnover

Inventory turnover