Consider the following company’s balance sheet and income statement. (LG 20-4)

Income Statement Sales (all on credit) $200,000 Cost of goods sold 130,000 Gross margin 70,000 Selling and administrative expenses 20,000 Depreciation 8,000 EBIT 42,000 Interest expense 4,800 Earnings before tax 37,200 Taxes 11,160 Net income $ 26,040 For this company, calculate the following:

a. Current ratio.

b. Number of days’ sales in receivables.

c. Sales to total assets.

d. Number of days in inventory.

e. Debt-to-asset ratio.

f. Cash-flow-to-debt ratio.

g. Return on assets.

h. Return on equity.

 LO.1