Balance Sheet 2005 2004 2003 12,000 Assets Cash Accounts receivable, net Inventory Other current assets Plant and equipment, net Total assets 100,000 142,000 5,000 160,000 419,000 14,000 80,000 97,000 6,000 110,000 307,000 17,000 60,000 52,000 4,000 70,000 203,000 Liabilities and Equity Accounts payable Federal income tax payable Long-term liabilities Common stock, $5 par value Retained earnings Total liabilities and equity 74,800 20,000 120,000 110,000 94,200 419,000 49,400 14,400 73,000 110,000 60,200 307,000 23,000 28,000 22,400 80,000 49,600 203,000 Income Statement 2005 Net Sales 1,480,000 Cost of goods sold 723,000 Gross profit 757,060 Marketing and administrative costs 670,000 Operating Income 87,000 Interest cost 12,000 Income before income tax 75,000 Income tax 30,000 Net Income 45,000 Given above information, calculate the following ratios: 2004 1,245,000 805,000 440,000 396,700 43,300 7,300 36,000 14,400 21,600 2003 1,050,000 512,000 538,000 467.760 70,240 2,240 68,000 28,000 40,000 Ratios 2005 2004 Working Capital Current Ratio Acid-test ratio Accounts receivable turnover Collection period of receivables Inventory turnover Days to sell inventory Debt-to-equity ratio Times interest earned Comment on the liquidity situation of Klausenheimer based on your ratio analysis