6-1 (RATIO ANALYSIS) Hai Di Lao Corporation Income Statement For the Year Ended December 31 Net Sales (All on account) Cost of Goods Sold Gross Profit Selling and Administrative 2023 2022 $5,500,000 $5,900,000 2,200,000 2,500,000 3,300,000 3,400,000 800,000 840,000 Expenses Income from Operations 2,500,000 2,560,000 Interest Expense 90,000 92,000 Income Before Income Tax 2,410,000 2,468,000 Income Tax Expense (25%) 602,500 617,000 Net Income $1,807.500 $1.851.000 Hai Di Lao Corporation Statements of Financial Position December 31 2023 Assets Property, Plant, and 2022 $1,000,000 $796,000 Equipment (net) Intangible Assets 240,000 178,000 Inventory 40,000 36,000 Accounts Receivable (net) 360,000 240,000 Short-term Investment 160,000 20,000 Cash 400,000 360,000 TOTAL ASSETS $2.200.000 $1.630.000 Equity and Liabilities Share Capital-Ordinary ($10 $300,000 $ 300,000 par) Accounting Principles 2 (Accounting) | 9 Edition | 19 Retained Earnings TOTAL EQUITY Liabilitics Bonds Payable Notes Payable (short term) Salaries and Wages Payable Accounts Payable 650,000 $950,000 UPH 450,000 $750,000 $ 116,000 400,000 110,000 288,000 $ 64,000 376,000 140,000 96,000 Income Taxes Payable 336,000 204,000 TOTAL LIABILITIES $625,000 $880,000 TOTAL EQUITY AND $2,200,000 $1.630,000 LIABILITIES Instructions Compute the following ratios for 2023. (Weighted-average ordinary shares in 2023 were 30,000) a. Current Ratio b. Acid-Test (Quick) Ratio c. Accounts Receivable Tumover d. Average Collection Period e. Inventory Turnover f. Asset Turnover g. Return on Assets h. Return on Ordinary Shareholders' Equity i. Earnings per share (EPS) j. Times Interest Earned k. Debt to Assets Ratio