2 THE DAI SOLCHICIS IUI COSIC PIQUULES, Corporate, are given UCIUW. Castile Products, Incorporated Balance Sheet 1.2 points 8 01:39:05 eBook Print References Assets. Current assets: December 31 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, $ 5 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 6,500 35,000 70,000 3,500 115,000 185,000 $ 300,000 $ 50,000 80,000 130,000 30,000 140,000 170,000 $ 300,000 Sales Castile Products, Incorporated Income Statement For the Year Ended December 31 Cost of goods sold $420,000 292, 500 Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income 127,500 89,500 38,000 8,000 30,000 9,000 $ 21,000 Account halances at the heninning of the year were accounts receivable $25 000 and inventon $60.000 A Required: Compute the following financial data and ratios: 1. Working capital. s 01:20:00 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 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.) Answer is complete but not entirely correct. 1. Working capital $ 65,000 1 2. Cument ratio 2.3 3. Acid-test ratio 0.00 4. Debt-to-equity ratio 0.47 5. Times interest eamed ratio 3.75 6. Average collection period 30.0 days 7. Average sale period 87.0 days 8. Operating cycle 117.0 days