Al PROBLEM 4-6 A B C D E 5 the data in your formulas, usually the Given Data section. 6 DATA Balance Sheet: (000) 8 Cash $500 9 Accounts receivable 2,000 10 Inventories 1,000 11 Current assets $3,500 12 Net fixed assets 4,500 13 Total assets $8,000 14 15 Accounts payable $1,100 16 Accrued expenses 600 17 Short-term notes payable 300 18 Current liabilities $2,000 19 Long-term debt 2,000 Owners' equity 4,000 Total liabilities and owners' equity $8,000 22 23 Income Statement: (000) 24 Sales (all credit) $8,000 25 Cost of goods sold 3,300 26 Gross profit $4,700 Operating expenses (includes $500 depreciation) 3,000 28 Operating profit $1,700 29 Interest expense 367 30 Earnings before taxes $1,333 31 Income taxes (21%) 280 32 Net income $1,053 33 34 SOLUTION 35 Calculate the following ratios: 36 Current ratio Debt ratio 38 Times interest earned 39 Average collection period Inventory turnover Fixed-asset turnover Total assets turnover Operating profit margin Operating return on assets 45 Return on equity