A. Required: 1. Please calculate the following ratios and amounts: a) working capital, current ratio, acid-test ratio, cash to current liabilities ratio, days sales in receivables (based on ending accounts receivables), days sales in inventory (based on cost of goods and ending inventory), operating cycle, total debt to equity ratio and times interest earned. For your calculations, assume that a year amounts for 360 days

The balance sheet and the income statement of Omega Company containing data in is as follows: Balance Sheet 20X1 Assets Fixed assets: Property, plant and equipment Less accumulated depreciation Net property, plant and equipment Total fixed assets 5,500,000 1,075,000 6,575,000 Current assets: 44EUL 3,500,000 20X1 Liabilities & Stockholders' Equity Stockholders' equity: 11,000,000 Common stock (3,925,000) Retained earnings 7,075,000 Total stockholders' equity 7,075,000 Long - term liabilities: Long-term debt 700,000 Total long-term liabilities 800.000 Current liabilities: 1,650,000 Accounts payable 2,100,000 Short-term debt 750,000 Total current liabilities 6,000,000 Total liabilities Total liabilities & stockholders' equity 13,075,000 3,500,000 Cash and cash equivalents Marketable securities Accounts receivables Inventory Prepaid expenses Total current assets 700,000 2,300,000 3,000,000 6,500,000 Total assets 13,075,000 17,499,600 (13,000,000) 4.499,600 Income Statement 20X1 Sales Cost of goods Gross margin Selling and administrative expenses Net operating income Interest expense Income before taxes Income taxes (25%) Net income (3,599,600) 900,000 (400,000 500,000 (125,000) 375,000