Brookstone Company Balance Sheets For the Period Ending December 31, 2021 2021 20201 Assets: Cash $29,568 $27.648 Accounts receivable 38,616 35,280 Merchandise inventory 87,750 74,052 Long-term investments 67,080 67,680 210,600 174,600 Machinery Accumulated depreciation (40.260 (37.440) Total assets $393,354 $341,820 Liabilities: Accounts payable $78,000 $48,456 12,870 12,2401 Income taxes payable Bonds payable 58.500 79.200 Total liabilities $149,370 $139,896 Equity: Common stock 140,400 115,200 Paid-in capital in excess of par 15,600 10,8001 Retained earnings 87.984 75.924 Total equity $243.984 $201,924) Total liabilities and equity $393.354 $341.820 Brookstone Company Income Statement For Year Ended December 31, 2021 Sales $288.0001 Cost of goods sold $97,080 Depreciation expense 35,280 Other operating expenses 57,600 Interest expense 2.400 -192,360 Other gains (losses): Loss on sale of equipment (10.080 Income before taxes 85,560 Income taxes expense 33.180 Net income $52.380 Additional information: (1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired. (2) Old machinery with an original cost of $45,060 was sold for $2,520 cash. (3) Loss on Sale of Plant Asset was $10,080 (4) New machinery was purchased for $81,060 cash. (5) Cash dividends of $40,320 were paid. (6) Additional shares of stock were issued for cash. (6) Additional shares of stock were issued for cash. Ratio Formula Result Current Ratio (29568+38616+87750)/(78000+12870) 1.72 Example Acid Test Ratio Account Receivable Turnover Inventory Turnover Days Sales Uncollected Days Sales in Inventory Total Asset Turnover Debt Ratio Equity Ratio Debt-to-Equity Ratio Profit Margin Ratio Gross Margin Ratio Return on Total Assets Times Interest Earned