Calculate each of the following ratios for This Year: 1. Current Ratio 2. Accounts Receivable Turnover 3. Average Collection Period (average days in accounts receivable) 4. Inventory Turnover 5. Average sale period (average days in inventory) 6. Operating Cycle 7. Gross Margin Percentage 8. Net profit margin percentage 9. Return on assets 10. Return on equity

	This Year	Last Year
Assets
Current Assets:
Cash	$ 10,000	$ 15,000
Accounts Receivable	$ 15,000	$ 25,000
Inventory	$ 25,000	$ 15,000
Total Current Assets	$ 50,000	$ 55,000
Property, Plant & Equipment (net)	$ 180,000	$ 170,000
Total Assets	$ 230,000	$ 225,000
Liabilities & Equities
Liabilities:
Total Current Liabilities	$ 2,500	$ 3,000
Bonds Payable	$ 75,000	$ 75,000
Total Liabilities	$ 77,500	$ 78,000
Equities:
Common Stock	$ 100,000	$ 100,000
Retained Earnings	$ 52,500	$ 47,000
Total Equities	$ 152,500	$ 147,000
Total Liabilities & Equities	$ 230,000	$ 225,000
Sales Revenue	$ 250,000	$ 220,000
Cost of Goods Sold	$ 155,000	$ 132,000
Gross Margin	$ 95,000	$ 88,000
Selling & Administrative Expenses	$ 74,250	$ 73,500
Operating Income	$ 20,750	$ 14,500
Interest Expense	$ 5,500	$ 5,500
Net Income	$ 15,250	$ 9,000