compute the following:

14 PROBLEM VI (70 points) XYZ COMPANY, INC. Balance Sheet at December 31, 1998 Cash $ 100 , 000 Acc. Payable $ 500 , 000 Acc. Rec. 450, 000 600, 000 Notes Pay. (Bank) 300, 000 Inventory Mis. Accruals 100 , 000 Net Fixed Assets Current Portion-- 850. 000 Long Term Debt 50, 000 Long Term Debt 700, 0 Common Stock 50 , 000 Paid in Surplus 50, 000 Total Retained Earnings 250, 000 Pay $2, 000 , 000 Total $2, 000 , 000 XYZ COMPANY, INC. Income Statement for 12 months ended Dec. 31, 1998 NET SALES (all on Credit) $ 6, 000, 000 less Cost of Goods Sold 4, 200 , 000 Gross Profit $ 1, 800 , 000 Operating Expenses 1 , 000 , 000 Operating Profit (EBIT) 800 , 000 Other Expenses Interest on Debt $ 160, 000 Earnings Before Taxes S 640, 000 Taxes (508) 320, 000 Net Profit S 320, 000 Compute the following ratios using definitions provided in class. Show all formulas, computations and then your result. Assume that the 12/31/98 balance sheet represents a very typical (average) day for this company when computing ratios. In calculations requiring days, please use 365