The Brown Place’s condensed balance sheets for December 31, 20X1, and 20X2, and its income statement for 20X2 are shown below:

Brown Place Condensed Balance Sheets December 31, 20X1 and 20X2 20X1 20X2 Assets Current Assets:

Cash $ 30,000 $ 40,000 Marketable Securities 50,000 50,000 Accounts Receivable 100,000 95,000 Inventory 20,000 25,000 Total Current Assets 200,000 210,000 Property and Equipment:

Land 500,000 500,000 Building 4,800,000 5,800,000 Equipment 1,000,000 1,100,000 Accumulated Depreciation (1,600,000) (2,000,000)

Net Property and Equip. 4,700,000 5,400,000 Investments 100,000 60,000 Total Assets $5,000,000 $5,670,000 Liabilities and Owners’ Equity Current Liabilities:

Accounts Payable $ 60,000 $ 70,000 Dividends Payable 30,000 50,000 Current Portion of LTD 100,000 130,000 Total Current Liabilities 190,000 250,000 Long-Term Debt 4,000,000 4,370,000 Capital Stock 500,000 500,000 Retained Earnings 310,000 550,000 Total Liabilities and Owners’ Equity $5,000,000 $5,670,000 Brown Place Condensed Income Statement For the year ended December 31, 20X2 Sales $6,000,000 Cost of Sales 1,000,000 Gross Profit 5,000,000 Depreciation 400,000 Other Expenses (except depreciation) 4,500,000 Net Operating Income 100,000 Gain on Sales of Investments 300,000 Income Taxes 110,000 Net Income $ 290,000 Additional expense information for 20X2:
Interest expense — $400,000 Lease expense — $200,000 Requtred:
1. Calculate for 20X1 and 20X2 the following:

a. Current ratio

b. Acid-test ratio

c. Debt-equity ratio

d. Long-term debt to total capitalization ratio 2. Calculate for 20X2 the following:
Accounts receivable turnover Inventory turnover Property and equipment turnover Total assets turnover Return on owners’ equity Return on assets Number of times interest earned ratio Fixed charge coverage ratio op rosa Amn Profit margin