Current assets Cash Accounts receivable Inventory COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2021 Assets $86,219 3,250 17,897 6,300 $113,666 Prepaid expenses Property, plant, and equipment Furniture and fixtures $12,500 Accumulated depreciation-furniture and fixtures Computer equipment (1,250 11,250 4,200 Accumulated depreciation-computer equipment (600 ) 3,600 Kitchen equipment 29,000 Accumulated depreciation-kitchen equipment (2,050) 26,950 41,800 Total assets $155,466 Current liabilities Accounts payable Income tax payable Dividends payable Salaries and wages payable Interest payable Note payable-current portion Long-term liabilities Note payable-long-term portion Total liabilities Stockholders' equity Liabilities and Stockholders' Equity $5,848 19,690 700 2,250 188 4000 $32,676 6,000 38,676 Stockholders' equity Paid-in capital Preferred stock, 2,800 shares issued and outstanding $14,000 Common stock, 25,930 shares issued, 25,180 outstanding 25,930 39,930 Retained earnings 77,360 Total paid-in capital and retained earnings 117,290 Less: Treasury stock (750 common shares) 500 Total stockholders' equity Total liabilities and stockholders' equity COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2021 Sales revenue Cost of goods sold Gross profit $462,500 231,250 231,250 Operating expenses Salaries and wages expense $92,500 Depreciation expense 3,900 Other operating expenses 35,987 132,387 Income from operations 98,863 Other expenses Interest expense 413 Income before income tax 98,450 Income tax expense 19,690 Net income $78,760 Additional information: 116.790 $155,466 Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment. The loan would be repaid over a 4-year period. The terms of the loan provide for equal semiannual installment payments of $2,500 on May 1 and November 1 of each year, plus interest of 5% on the outstanding balance. (a) Your answer is partially correct. Calculate the following ratios (use ending balances in place of averages, where necessary): (Round current ratio to 2 decimal places, eg. 1.68:1. Round times interest earned to 0 decimal places, eg. 125. Round other answers to 1 decimal place, e.g. 2.2 or 2.2%.) 1. Current ratio 2. Accounts receivable turnover 3. Inventory turnover 4. Debt to assets 3.48 :1 142 times 13 times 0.3 % 5. Times interest earned 239 times 6. Gross profit rate 50 % 7. Profit margin 17 % 8. Asset turnover 3 times 9. Return on assets 50.7 % 10. Return on common stockholders' equity 67 %