19. Financial ratios (S29.2–S29.5) As you can see, someone has spilled ink over some of the entries in the balance sheet and income statement of Transylvania Railroad (Table 29.9). Can you use the following information to work out the missing entries? (Note: For this problem, December 2020 December 2019 Balance Sheet Cash 20 Accounts receivable 34 Inventory 26 Total current assets 80 Fixed assets (net) 25 Total 105 Notes payable 25 20 Accounts payable 30 35 Total current liabilities 55 Long-term debt 20 Equity 30 Total 115 105 Income Statement Sales Cost of goods sold Selling, general, and administrative expenses 10 Depreciation 20 EBIT Interest Earnings before tax Tax Earnings available for common stock

⟩ TABLE 29.9 Balance sheet and income statement of Transylvania Railroad (figures in

$ millions).

854 Part Ten Financial Planning and Working Capital Management use the following definitions: inventory turnover = COGS/average inventory; receivables collection period = average receivables/[sales/365].)

• Long-term debt ratio: 0.4.

• Times-interest-earned: 8.0.

• Current ratio: 1.4.

• Quick ratio: 1.0.

• Cash ratio: 0.2.

• Inventory turnover: 5.0.

• Receivables collection period: 73 days.

• Tax rate = 0.4.