Consider the following company’s balance sheet and income statement. (LG 21-4)

Balance Sheet Assets Liabilities and Equity Cash $ 4,000 Accounts payable $ 30,000 Accounts receivable 52,000 Notes payable 12,000 Inventory 40,000 Total current liabilities 42,000 Total current assets 96,000 Long-term debt 36,000 Fixed assets 44,000 Equity 62,000 Total assets $140,000 Total liabilities and equity $140,000 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.