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Chesapeake Canine Corporation's most recent balance sheet and income statement appear begin{tabular}{|l|r|r|} hline Accounts payable & $180,000 & $210,000 hline Accrued liabilities & 50,000
Chesapeake Canine Corporation's most recent balance sheet and income statement appear \begin{tabular}{|l|r|r|} \hline Accounts payable & $180,000 & $210,000 \\ \hline Accrued liabilities & 50,000 & 50,000 \\ \hline Notes payable, short term & 40,000 & 40,000 \\ \hline Total current liabilities & 270,000 & 300,000 \\ \hline Bonds payable & 170,000 & 200,000 \\ \hline Total liabilities & 440,000 & 500,000 \\ \hline Stockholders' equity: & & \\ \hline Common stock, \$2 par value & 200,000 & 200,000 \\ \hline Additional paid-in capital & 330,000 & 330,000 \\ \hline Retained earnings & 480,000 & 460,000 \\ \hline Total stockholders' equity & 1,010,000 & 990,000 \\ \hline Total liabilities \& stockholders' equity & $1,450,000 & $1,490,000 \\ \hline \multicolumn{1}{|c|}{ Income Statement } & & \\ \hline Sor the Year Ended December 31, Year 2 & $1,220,000 & \\ \hline Cost of goods sold & 750,000 & \\ \hline Gross margin & 470,000 & \\ \hline Selling and administrative expense & 355,000 & \\ \hline Net income & $115,000 & \\ \hline \end{tabular} Required (for year 2): a. Compute Lady Bird's current ratio AND acid-test (quick) ratio. b. Compute Lady Bird's accounts receivable turnover ratio AND average collection period. c. Compute Lady Bird's inventory turnover ratio AND average sale period. d. Compute Lady Bird's return on equity ratio AND earnings per share
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