Co. XYZ Balance Sheet

Assets:

Cash and marketable securities	$400,000
Accounts receivable	1,415,000
Inventories	1,847,500
Prepaid expenses	24,000
Total current assets	$3,686,500
Fixed assets	2,800,000
Less: accumulated depreciation	1,087,500
Net fixed assets	$1,712,500
Total assets	$5,399,000

Liabilities:

Accounts payable	$600,000
Notes payable	875,000
Accrued taxes
Total current liabilities	$1,567,000
Long-term debt	900,000
Owners equity
Total liabilities and owners equity

Co. XYZ Income Statement

Net sales (all credit)	$6,375,000
Less: Cost of goods sold	4,375,000
Selling and administrative expense	1,000,500
Depreciation expense	135,000
Interest expense
Earnings before taxes	$765,000
Income taxes
Net income
Common stock dividends	$230,000
Change in retained earnings

a. Current ratio

b. Debt ratio

c. Average collection period (365 days)

d. Times interest earned

e. Net profit margin

f. Inventory turnover

g. Fixed assets turnover

h.Gross profit margin

i. Return on equity