(Computing ratios) Use the information from the balance sheet and income statement in the popupwindow, to calculate the followingratios:

a. Current ratio

b.Acid-test ratio

c. Times interest earned

d. Inventory turnover

e. Total asset turnover

f. Operating profit margin

g. Days in receivables

h. Operating return on assets

i. Debt ratio

j. Fixed asset turnover

k. Return on equity

Balance Sheet

ASSETS

Cash

$

99,000

Accounts receivable

33,000

Inventory

43,000

Prepaid expenses

19,000

Total current assets

$

194,000

Gross plant and equipment

402,000

Accumulated depreciation

(66,000)

Total assets

$

530,000

LIABILITIES AND OWNERS' EQUITY

Accounts payable

$

93,000

Accrued liabilities

70,000

Total current liabilities

$

163,000

Long-term debt

122,000

Common stock

203,000

Retained earnings

42,000

Total liabilities and equity

$

530,000

Income Statement

Sales*

$

218,000

Cost of goods sold

(90,000)

Gross profit

$

128,000

Selling, general, and administrative expenses

(27,000)

Depreciation expenses

(28,000)

Operating income

$

73,000

Interest expense

(5,000)

Earnings before taxes

$

68,000

Taxes

(27,200)

Earnings available to common shareholders

$

40,800

* 12% of sales are cash sales.

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