12-49 Financial Ratios Consider the data for Ryan Company in Exhibit 12-15. Assume all sales are o Compute the following ratios for the years 20X2 and 20X3: a. Percentage of net income to stockholders' equity (ROE) b. Gross profit rate c. Percent of net income to sales d. Ratio of total debt to stockholders' equity (define total debt as total liabilities) e. Inventory turnover f. Current ratio g. Average collection period for accounts receivable December 31 20x3 20X2 20x1 $25 20 70 50 70 60 10 10 30 80 6050 40 5370 $330 $290 30 Cash Accounts receivable Merchandise inventory Prepaid expenses Land Building Equipment Total assets 90 80 10 30 70 30 $ 50 Accounts payable Taxes payable Accrued expenses payable 20 15 45 40 30 10 10 - Long-term debt 45 Paid-in capital Retained earnings Total liabilities and stockholders' equity 150 150 150 50 $330 $290 90 70 $370 Sales (all on credit) Cost of goods sold Operating expenses Pretax income Income taxes Net income Year Ended December 31 20X2 $750 410 295 45 15 $ 30 20X3 $800 435 305 60 20 40