Calculate and show work for:

1. Current Ratio 2.Quick Ratio 3.Working Capital 4. Accounts Receivable Turnover 5.Average Collection Period 6. Inventory Turnover 7. Days in Inventory 8. Debt to Total Assets Ratio 9.Gross Profit Ratio 10. Profit Margin Ratio 11.Return on Assets Ratio 12. Asset Turnover Ratio

Based on the ratios computed in this question, answer the following questions and use the financial statement ratios to support answers!!

Do you feel that the company is able to meet its current and long term obligations as they become due?

Comment on the profitability of the company with respect to the various profitability ratios that you computed.

Would you lend money to this company for the long term?

Comment on the ability of the company to collect its receivables and mange inventory.

Accounts Payable Accounts Receivable Accumulated Depreciation-Delivery Equipment Accumulated Depreciation-Store E S23,215 10,880 15,680 32,300 6,000 S23,215 Delivery Expense Delivery Depreciation Expense-Delivery Equipment Depreciation Expense-Store Equipment Freight-in 19,680 41,800 6,000 7,000 57,000 4,000 9,500 5,060 57,000 5,060 70,000 16,305 16,30S 11,000 9,000 8,000 3,700 34,360 45,000 4,500 3,500 630,500 7,000 3,000 18,400 120,000 860,000 14,000 6,000 12,500 125,000 3,500 9,000 Retained Earnings Insurance Expense Interest Expense Interest Revenue Merchandise Inventory Notes Payable Prepaid Insurance 8,000 3,700 34,360 45,000 13,500 630,500 Purchase Discounts Purchase Returns and Allowances Rent Expense Salaries Expense Sales Sales Commissions Expense Sales Commissions Payable Sales Returns and Allowances Store Equipment Property Taxes Payable Utilities Expense 3.000 18,400 120,000 860,000 8,000 12,500 125,000 Analysis reveals the following additi onal data 1. 2. 3. 4. 5. The beginning balance of accounts receivable is $12,750 The amount of total assets at the beginning of the year is S145,921 Salaries expense is 65% selling and 35% administrative. Insurance expense is 50% selling and 50% administrative. A physical inventory was conduced for year ended December 31, 2008 and the inventory was valued at S38,100. Rent expense, utilities expense, and property tax expense are administrative expenses. S15,000 of the notes payable is due for payment next year 6. 7