A firm had the following abbreviated income statement for 2021 and abbreviated balance sheets at the end of 2020 and 2021.

Income Statement For the Year Ended Dec. 31, 2021

Sales 570,000 Cost of goods sold 300,000 Gross profit 270,000 Operating expenses 180,000 Depreciation expense $ 26,000 Operating income (EBIT) 64,000 Interest expense 20,000 Earnings before taxes 44,000 Income tax expense 15,000 Net income (earnings after tax) 29,000

Balance sheets Dec. 31, 2021 and 2020

2021 2020 Cash 14,000 12,000 Short-term investments 38,000 40,000 Accounts receivable 26,000 20,000 Inventory 59,000 59,000 Prepaid expenses 16,000 10,000 Buildings (net) 600,000 620,000 Equipment (net) 96,000 109,000 Total assets 849,000 870,000 Accounts payable 39,000 19,000 Wages payable 2,000 4,000 Bonds payable 350,000 410,000 Common stock 200,000 200,000 Retained earnings 258,000 237,000 Total liabilities & equity 849,000 870,000

The company paid a dividend in 2021 of $8,000 and $6,000 in 2020. All sales are made on account, so there are no cash sales.

Required: A. Calculate the current ratio at the end of 2021. B. Calculate the quick ratio at the end of 2021. C. Calculate the working capital at the end of 2021. D. Calculate average age of accounts receivable during 2021. E. Calculate the inventory turnover during 2021. F. Calculate the average age of accounts payable during 2021. G. Calculate the accounts receivable turnover during 2021. H. Calculate the pre-tax profit margin for 2021. I. Calculate the cash conversion cycle, in days during 2021. J. Calculate the debt/equity ratio at the end of 2021. K. Calculate the debt ratio at the end of 2021. L. Calculate the times interest earned ratio for 2021. M. Calculate the dividend payout ratio for 2021. N. Calculate the gross profit margin for 2021. O. Calculate the operating profit margin for 2021. P. Calculate the net profit margin for 2021. Q. Calculate the return on assets (ROA) for 2021. R. Calculate the total asset turnover during 2021. S. Calculate the return on equity (ROE) for 2021. T. Calculate the marginal tax rate for 2021. Your answers to this open-ended assignment should be placed in the space below this line. A Current ratio B Quick ratio C Working capital D Average age of accounts receivable E Inventory turnover F Average age of accounts payable G Accounts receivable turnover H Pre-tax profit margin I Cash conversion cycle J Debt/equity ratio K Debt ratio L Times interest earned ratio M Dividend payout ratio N Gross profit margin O Operating profit margin P Net profit margin Q Return on assets R Total asset turnover S Return on equity T Marginal tax rate