Calculate the following ratios

4. Using the textbook, calculate the ratios set out below and round to two decimals. Do the ratios for both years unless the ratio needs an average then only do it for the current year: a. Current Ratio b. Quick ratio C. Accounts Receivable Turnover d. Days Sales in Receivables e. Inventory Turnover f. Days Sales in Inventory g. Working Capital h. Liabilities to Stockholders' Equity i. Earnings Per Share Comparative Balance Sheet December 31, 2018 and 2017 2018 2017 Assets Current Assets: Cash Accounts Receivable, Net Merchandise Inventory Prepaid Rent Total Current Assets TS $ $ $ $ $ 75,000 150,000 130,000 30,000 385,000 97,000 100,000 60,000 10,000 267,000 $ Property. Plant, and Equipment: Equipment Less: Accumulated Depreciation - Equipment Total Property, Plant, and Equipment s Total Assets $ $ 435,000 (80,000) 355,000 740,000 $ S $ $ 208,000 (52,400) 155,600 422,600 $ 2018 2017 Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Unearned Revenue Salaries Payable Federal Income Taxes Payable Total Current Liabilities $ $ $ $ $ $ 84,000 42,000 50,000 10,000 186,000 110,150 50,000 33,000 10,000 203,150 $ $ Long Term Liabilities Note Payable Total Long-Term Liabilities Total Liabilities $ $ $ 120,000 120,000 306,000 $ $ 5 203,150 Stockholders' Equity: Common Stock, $1 Par Paid-In Capital in Excess of Par Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ $ $ 163.000 18,000 253,000 4 34,000 740,000 $ $ $ $ $ 54,300 18,000 147,150 219,450 422,600 S $ 3 Page Comparative Statement of Income For the Years Ended December 31, 2018 and 2017 2018 2017 S 1.200,000 $ 650,000 $ 550,000 $ 850,000 $ 500,000 S 350,000 Sales Cost of Goods Sold Gross Margin Operating Expenses: Salaries and Wages Expense Rent Expense Depreciation Expense Total Operating Expenses Income from Operations Gain on Sale of Equipment Interest Expense Increase (Decrease) in I Operating Income Income before Taxes Federal Income Taxes 30% Net Income $ 125,000 $ 25,000 $ 30,000 $ 180,000 $ 370,000 $ 4,500 (8,000) (3,500) $ $ $ $ $ $ $ $ 100,000 25,000 18,000 143,000 207,000 0 (6,500) (6,500) S S $ $ $ 366,500 109,950 256,550 $ $ $ 200,500 60,150 140,350 Statement of Retained Earnings 2018 Carlo's Crazy Cars Comparative Statement of Retained Earnings For the Years Ended December 31, 2018 and 2017 2017 Retained Earnings, $ 147,150 $ 100,650 Beginning of Year Net Income S 256,550 $ 140,350 Less: Dividends $ 150,700 $ 93,850 Retained Earnings, End of $ 253,000 $ 147,150 Year 1. Equipment with a cost of $15,000 on which depreciation has been recorded was sold for cash. Equipment was purchased using cash and a long-term note payable. 2. Stock was issued for cash. 3. Dividends were paid in cash. 41 Page 1) Sale proceeds of equipment sold calculation: First we will calculate the depreciation on equipment sold as per below Beginning balance of Accumulated depreciation - $52400 Add: Current years' depreciation expense - $30000 Total depreciation $52400 + $30XXO-582400 Less: Ending balance of accumulated depreciation 580000 Depreciation on equipment sold - 582400 - 580000 - $2400 Book value of the equipment sold = Cost - Accumulated depreciation on equipment sold Book value of the equipment sold - $15000 - $2400 - $12600 Now, we will calculate sale proceeds on the sale of equipment: Gain on sale = Sale proceeds - Book value of equipment sold. $4500 - Sale proceeds - $12600 Sale proceeds - $4500+ $12600 - S17100 2) Purchase of equipment calculation: Beginning balance of equipment - $208000 Less: Cost of the equipment sold -($15000) Total balance of equipment -5193000 Ending balance of equipment = Total balance of equipment+ Purchase of equipment $435000 = $193000 + Purchase of equipment Purchase of equipment - 5435000 - $193000 - $242000 Out if the purchase of equipment for $242000, long term pote payable issue was for S120000. So the cash paid to purchase the equipment is $242000 - S120000 - $122000 With the above adjustments, the required cash flow statement is given below: Net income S256550 Add Depreciation S30000 Less: Gain on sale of equipment ($4500) Less: Increase in accounts receivable (S50000) Less: Increase in inventory (570000) Add: Increase in prepaid rent (S20000) Less: Decrease in accounts payable (526150) Less: Decrease in uncamed revenue (S8000) Add: Increase in salaries payable SI 7000 Cash from operating activities S124900 Purchase of equipment (S122000) Sale of equipment SI7100 Cash from investing activities (S104900) Common stock issued S108700 Dividend paid (S150700) Cash from financing activities (542000) Net cash provided by operating investing and financing activities (522000) Beginning cash balance S97000 Ending cash balance $75000