Below is the Income Statement and Balance sheet for the Hilltop Company.

Using the income statement and balance sheet, compute the following ratios for year 3:

7 8 Year 3 Year 2 $330,000 $260,000 ($163,000) ($144,000) 9 10 11 12 13 Sales Cost of goods sold Operating Expenses Marketing expenses R&D expenses Administrative expenses Operating Income Interest Expense Income before income taxes Income tax expense Net Income 14 ($21,000) ($27,000) ($45,000) $74,000 ($6,000) $68,000 ($25,000) $43,000 ($21,000) ($6,000) ($50,000) $39,000 ($11,000) $28,000 ($8,000) $20,000 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Cash Accounts Receivable Inventory Current Assets Property, plant & equipment Total Assets Accounts payable Short term debt Current liabilities Long-term debt Total Liabilities Paid-in capital Retained earnings Total liabilities and equities Year 3 $8,000 $18,000 $36,000 $62,000 $138,000 $200,000 $28,000 $15,000 $43,000 $52,000 $95,000 $19,000 $86,000 $200,000 Year 2 $8,000 $37,000 $47,000 $92,000 $126,000 $218,000 $39,000 $20,000 $59,000 $65,000 $124,000 $19,000 $75,000 $218,000 2 40 41 Return on Equity = 42 43 44 Return on Sales 45 46 47 Asset Turnover 48 49 50 Asset-to Equity Ratio = 51 52 53 Accounts Receivable turnover 54 55 56 Average Collection period II 57 58 59 Inventory turnover 60 61 62 Number of days' sales in inventory 63 64 65 Debt ratio = 66 67 68 Debt-to-equity ratio = 69 70 71 Current ratio 72 73