6x2-12 marks Question 2 The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over a. Find out the firm's current ratio, and quick ratio b. Refer to the data for Pettijohn Inc. What is the firm's days sales outstanding? Assume a 360- day year for this calculation c. What is total asset tumover ratio, inventory turnover ratio and time interest earned ratio for the company Balance Sheet (Millions of Assets 2016 Cash and securities $ 1,554.0 Accounts receivable 9,660.0 Inventories 13.440.0 Total current assets $24,654.0 Net plant and equipment 17.346,0 Total assets $42.000.0 Liabilities and Equity Accounts payable $ 7,980.0 Notes payable 5,880.0 Accruals 4.620.0 Total current liabilities $18.480,0 Long-term bonds 10.920,0 Total liabilities $29.400.0 Common stock 3,360.0 Retained earnings 9,240.0 Total common equity $12.000 Total liabilities and equity $42.000.0 Page 35 Income Statement (Millions of S) Net sales Operating costs except depr'n Depreciation Earnings befint and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net Income Other data: Shares outstanding (millions) Common dividends Intrate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 2016 $58,800,0 555.274.0 S. 1.029,0 $ 2,497.0 1.050.0 $ 1,447.0 $ 214.0 1.133.0 175,00 S 509.83 6.25% 21.7% $77.69