1.42 1 The financial statements for Castile Products, Incorporated are given below: Castile Products, Incorporated Balance Sheet December 31 points Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities Stockholders' equity: Common stock, $10 per value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Sales Castile Products, Incorporated Income Statement for the Year Ended December 31 Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 23,000 220,000 370,000 12,000 625,000 860,000 $ 1,485,000 $ 200,000 340,000 540,000 $ 150,000 795,000 945,000 $ 1,485,000 $ 3,825,000 1,380,000 2,445,000 560,000 1,885,000 34,000 1,851,000) 555,300 $ 1,295,700 1.42 points Account balances at the beginning of the year were: accounts receivable, $230,000, and inventory, $320,000. All sales were on account. Required: Compute the following financial data and ratios: 1. Working capital. 2. Current ratio. (Round your answer to 1 decimal place.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 4 Debt-to-equity ratio. (Round your answer to 2 decimal places.) 5. Times interest earned ratio. (Round your answer to 2 decimal places.) 6. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 7. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 8. Operating cycle. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 1. Working capital 2. Current ratio Answer is not complete. 1285,000 740 3 Acid-test ratio 4 Debt-to-equity ratio 5 Times interest earned ratio 5. Average collection period 7 Average sale period 5. Operating cycle 057 55.44 days days days