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$ Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets

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$ Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 98 Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings Total stockholders' equity Total liabilities and stockholders. equity 19,000 230,000 330,000 12,000 591,000 890,000 $1,481,000 $ 270,000 390,000 660,000 $ 150,000 671,000 821,000 $1,481,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $4,600,000 Cost of goods sold 1,386,000 Gross margin 3,214,000 Selling and administrative expenses 590,000 Net operating income 2,624,000 Interest expense 35,100 Net income before taxes 2,588,900 Income taxes (30%) 776,670 Net income $1,812, 230 Account balances at the beginning of the year were accounts receivable, $230,000; and inventory, $330,000. All sales were on account Required: Compute the following financial data and ratios: 1. Working capital 2. Current ratio. (Round your answer to 1 decimal place.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 4. Debt-to-equity ratio. (Round your answer to 2 decimal places.) 5. Times Interest earned ratio. (Round your answer to 2 decimal places.) 6. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 7. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 8. Operating cycle. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 1. Working capital 2 Current ratio 3. Acid-test ratio 4. Debt-to-equity ratio 5 Times interest eamed ratio 8. Average collection period 7. Average sale period 8. Operating cycle days days days

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