This is some questions from my practice test but I am not really sure how to do it.

2. The 2020 Cash Flow Statement for the Qian-Wang Trading Company is summarized below. Cash Used (Gained) in Operating Activities: -$1,550,680 (outflow) Cash Used (Gained) in Investing Activities: Cash Used (Gained) in Financing Activities: -$950,890 (outflow) $1,425,200 (inflow) Briefly explain each of these numbers and whether or not they should be a concern for Qian-Wang (3 C for correctly explaining the numbers, 3 T for evaluating areas of concern - 6 points total) sent 3. Use the balance sheet and income statement of Dalek Plumbing Supplies below to answer the questions on the following pages. Be sure to calculate ratios and percentages to 2 decimal places. Dalek Plumbing Supplies, Inc. Balance Sheet December 31, 2020 Dalek Plumbing Supplies, Inc. Income Statement For year ending Dec. 31, 2020 Revenue Net Sales $452,000 Cost of Goods Sold Beginning Inventory $ 87,000 Plant and Equipment Purchases 242,000 Merch. Available for Sale 329,000 Land Building, net Equipment, net 123,000 206,000 Ending Inventory Gross Profit 246,000 Total Assets Liabilities and Equity Current Liabilities 7,000 Bank Loan Accounts Payable Operating Expenses Bank Charges Depreciation Expense Management Salaries Miscellaneous Expense 25,000 67,000 Long-Term Liability 8,000 Mortgage Payable Telephone Expense 13,000 Shareholders' Equity 42,000 Utilities Expense Wages Expense Net Loss 106,000 Share Capital Retained Earnings Total Liabilities and Equity 268,000 ($ 22.000) 1) = Total C.A. Ratio Formulae 2) Total L x 100% 3)-N.I. x 100% Total A. N.S. Total C.L. a) Calculate the following ratios, showing all your work to two decimal places. Under each result, write a brief comment that explains and evaluates the result. (1 A, 1 C each-6 total) 1. Current Ratio = 2. Debt Ratio - Assets Current Assets Bank Accounts Receivable Merchandise Inventory $ 42,000 67,000 123,000 $232,000 $87,000 124,000 26,000 237,000 $469.000 $83,000 45,000 $128,000 142,000 $70,000 129,000 199,000 $469.000 3. Return on Net Sales - b) Answer the following questions, showing all work where needed. 1. Calculate the Horizontal Analysis on the I.S. Sales and Net Income. Assume 2019 Sales was $475,000 and 2019 Net Income was $15,000. (2 A) 2. Briefly explain if Dalek Plumbing Supplies is doing better or worse in 2020 in terms of Sales and Net Income. Refer to the answers above, and be sure to explain your reasoning. (3 C) c) Calculate the Vertical Analysis for Equipment. Explain what the result suggests about the "criticality" or importance of Equipment to the company. (1 A, 1 C) 2. The 2020 Cash Flow Statement for the Qian-Wang Trading Company is summarized below. Cash Used (Gained) in Operating Activities: -$1,550,680 (outflow) Cash Used (Gained) in Investing Activities: Cash Used (Gained) in Financing Activities: -$950,890 (outflow) $1,425,200 (inflow) Briefly explain each of these numbers and whether or not they should be a concern for Qian-Wang (3 C for correctly explaining the numbers, 3 T for evaluating areas of concern - 6 points total) 3. Use the balance sheet and income statement of Dalek Plumbing Supplies below to answer the questions on the following pages. Be sure to calculate ratios and percentages to 2 decimal places. Dalek Plumbing Supplies, Inc. Balance Sheet December 31, 2020 Dalek Plumbing Supplies, Inc. Income Statement For year ending Dec. 31, 2020 Revenue Net Sales $ 452,000 $ 42,000 Cost of Goods Sold 67,000 123,000 $232,000 $ 87,000 Beginning Inventory Purchases Plant and Equipment 242,000 $87,000 Merch. Available for Sale 329,000 Land Building, net Equipment, net 124,000 Ending Inventory 123,000 206,000 Gross Profit 246,000 26,000 237,000 $469.000 Total Assets Liabilities and Equity Current Liabilities Operating Expenses Bank Charges Depreciation Expense 7,000 $83,000 25,000 Bank Loan Accounts Payable 45,000 $128,000 Management Salaries 67,000 Long-Term Liability Miscellaneous Expense 8,000 Mortgage Payable 142,000 Telephone Expense 13,000 Shareholders' Equity 42,000 Share Capital $70,000 Utilities Expense Wages Expense 106,000 268,000 129,000 199,000 Net Loss ($ 22,000) Retained Earnings Total Liabilities and Equity $469.000 Ratio 1) 2) Total C.A. Total C.L. Total L. x 100% 3)=N.L. x 100% Total A. Formulae N.S. a) Calculate the following ratios, showing all your work to two decimal places. Under each result, write a brief comment that explains and evaluates the result. (1 A, 1 C each - 6 total) 1. Current Ratio = THEK THA 2. Debt Ratio Assets Current Assets Bank Accounts Receivable Merchandise Inventory 3. Return on Net Sales- b) Answer the following questions, showing all work where needed. 1. Calculate the Horizontal Analysis on the LS. Sales and Net Income. Assume 2019 Sales was $475,000 and 2019 Net Income was $15,000. (2A) 2. Briefly explain if Dalek Plumbing Supplies is doing better or worse in 2020 in terms of Sales and Net Income. Refer to the answers above, and be sure to explain your reasoning. (3 C) c) Calculate the Vertical Analysis for Equipment. Explain what the result suggests about the "criticality" or importance of Equipment to the company. (1 A, 1 C)