2019 2018 Hank & Lee Corporation Balance Sheet December 31, 2019 & 2018 Assets Current assets: Cash 279,000 Accounts receivable, net 136,000 Inventory 141,000 Prepaid expenses 69,000 Total current assets 625,000 Plant and equipment, net 789,000 Total assets $ 1,414,000 $ 170,000 150,000 150,000 60,000 530,000 870,000 1,400,000 $ $ Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock, $4 pairvalue Additional paid-in captal Retained earnings Total stockholders' equity Total liabilities & stockholders' equity 186,000 29,000 74,000 289,000 130,000 419,000 190,000 30,000 70,000 290,000 130,000 420,000 200,000 90,000 705,000 995,000 1,414,000 200,000 90,000 690,000 980,000 1,400,000 S $ Hank & Lee Corporation Income Statement For the Year Ended December 31, 2019 $ Sales (all on account) Cost of goods sold Gross margin Operating expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income 1,280,000 750,000 530,000 489,429 40,571 12.000 28,571 8,571 20,000 Calculate the following items (1 through 10) for Hank & Lee Corporation as they relate to the financial sttements presented above. Enter responses and answers in the space provided on the OFFICIAL ANSWER SHEET shown as the last page of this exam: 1. What is the Company's current ratio for 2019? 2. What is the Company's working capital for 2019? 3. What is the Company's Accounts Receivable turnover for 2019? 4. What is the Company's average collection period (days in A/R) for 2019? 5. What is the Company's Inventory turnover for 2019? 6. What is the Company's average sales period (days in Inventory) for 2019? 7. What is the Company's operating cycle for 2019? 8. What is the Company's Debt-to-Equity ratio for 2019? 9. What is the Company's Gross Margin (aka Gross Profit) percentage for 2019? 10. What is the Company's Return on Equity for 2019