Castile Products, Inc Balance Sheet December 31 Assets Current assets: $ Cash 20,000 160,000 320,000 Accounts receivable, net Merchandise inventory Prepaid expenses 11,000 511,000 Total current assets 870,000 Property and equipment, net $1,381,000 Total assets Liabilities and Stockholders' Equity Liabilities: $ Current liabilities 270,000 320,000 590,000 Bonds payable, 9% Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings Total stockholders' equity $ 120,000 671,000 791,000 $1,381,000 Total liabilities and stockholders' equity Castile Products, Inc. Income Statement For the Year Ended December 31 $3,000,000 1,147,000 1,853,000 620,000 1,233,000 28,800 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes 1,204,200 Income taxes (30%) 361,260 $ 842,940 Net income Account balances at the beginning of the year were: accounts receivable, $140,000; and inventory, $300,000. All sales were on account. 1. Working capital. 2. Current ratio. (Round your answer to 1 decimal place.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 4. Debt-to-equity ratio. (Round your answer to 2 decimal places.) 5. Times interest earned ratio. (Round your answer to 2 decimal places.) 6. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 7. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 8. Operating cycle. (Round your intermediate calculations and final answer to 1 decimal place.) 1. Working capital 2. Current ratio 3. Acid-test ratio 4. Debt-to-equity ratio 5. Times interest earned ratio 6. Average collection period days 7. Average sale period days 8. Operating cycle days