Given the following information: ITEM 2019 2020 Accounts Receivable 1,500 2,000 Accounts Payable 750 500 Accumulated Depreciation 1,000 1,500 Expense Accruals 500 750 Cash 1,000 1,300 Common Stock at Par @ $0.10 500 750 Cost of Goods Sold (COGS) 3,000 3,500 Depreciation Expense 750 500 Interest Expense Inventory Long Term Debt Operating Expenses Net Fixed Assets 500 750 2,500 2,800 1,500 1,850 500 750 4,000 4,500 Notes Payable Retained Earnings Sales Taxes Which of the following statement is correct? 750 500 1,500 1,750 5,300 6,000 220 200 Compared to in 2019, the firm's gross profit margin increases in 2020 Compared to in 2019, the firm's working capital increases in 2020 Compared to in 2019, the firm's equity multiplier increases in 2020 Compared to in 2019, the firm is less likely to repayits short term debt

2. Calculate the financial leverage - equity multiplier and cash cover ratio

The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 20Y9 and 20Y8, is:Dec. 31, 20Y9 Dec. 31, 20Y8AssetsCash $70,720 $47,940Accounts receivable (net) 207,230 188,190Inventories 298,520 289,850Investments 0 102,000Land 295,800 0Equipment 438,600 358,020Accumulated depreciation—equipment (99,110) (84,320)Total assets $1,211,760 $901,680Liabilities and Stockholders' EquityAccounts payable (merchandise creditors) $205,700 $194,140Accrued expenses payable (operating expenses) 30,600 26,860Dividends payable 25,500 20,400Common stock, $1 par 202,000 102,000Paid-in capital: Excess of issue price over par—common stock 354,000 204,000Retained earnings 393,960 354,280Total liabilities and stockholders' equity $1,211,760 $901,680The income statement for the year ended December 31, 20Y9, is as follows:Sales $2,023,898Cost of goods sold 1,245,476Gross profit $778,422Operating expenses:Depreciation expense $14,790Other operating expenses 517,299Total operating expenses 532,089Operating…

Sandhill Co. reported the following information for 2020: Sales revenue $2520000 Cost of goods sold 1748000 Operating expenses 282000 Unrealized holding gain on available-for-sale securities 85700 Cash dividends received on the securities 9200 For 2020, Sandhill would report comprehensive income of A.$85700. B.$499200. C.$575700. D.$584900.