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The balance sheet and income statement for the A. Thiel Mfg. Company are as follows: (Ratio analysis) Balance Sheet ($000) Cash $ 500 Accounts
The balance sheet and income statement for the A. Thiel Mfg. Company are as follows: (Ratio analysis) Balance Sheet ($000) Cash $ 500 Accounts receivable 2,000 Inventories 1,000 Current assets $3,500 Net fixed assets 4,500 Total assets $8.000 Accounts payable $1,100 Accrued expenses 600 Short-term notes payable 300 Current liabilities $2,000 Long-term debt 2,000 Owners' equity 4,000 Total liabilities and owners' equity $8,000 Income Statement ($000) Sales (all credit) $8,000 Cost of goods sold (3,300) Gross profit $4,700 Operating expenses (includes $500 depreciation) (3,000) Operating profits $1,700 Interest expense (367) Earnings before taxes $1,333 Income taxes (40%) (533) Net income $ 800 Calculate the following ratios: Operating return on assets. Debt ratio Current ratio Times interest earned Inventory turnover Total asset turnover Days in receivables Fixed-asset turnover Operating profit margin Return on equity
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