D E F G . M Calculate the ratios below given the financial data presented to your left. Total Answers $2,500 1,900 12,000 $16,400 1 Measures of Short-term Liquidity current assets / current liabilities quick assets / current liabilities net sales / accounts receivable 365 days / receivables turnover rate cost of goods sold / inventory current ratio quick ratio receivables turnover rate days to collect receivables inventory turnover rate 20,000 $36,400 Measures of Long-term Credit Risk total liabilities / total assets operating income / annual interest expense debt ratio Times Interest Earned $5,000 3,000 $8,000 B 1 Financial data for Cartwright Timbers 2 3 The Balance Sheet 4 5 Account 6 Current Asset 7 Cash B Accounts receivable 9 Inventory 20 1 Fixed Asset -2 Property, plant and equipment 131 4 Total Assets 5 6 Current Liability 7 Accounts payable -8 Wages payable 9 20 Long-term Liability 21 Bonds payable 2 3 Equity 4 Common Stock 5 Retained Earnings 26 7 Total Liabilities + Equity 28 9 The Income Statement 30 11 Account 12 Net sales 13 Cost of goods sold 14 gross profit 15 Operating expenses 16 operating income 37 Interest expense 18 Tax expense 19 net income 30 11 Measures of Profitability net income / sales net income / total assets net income / total equity Profi Margin return on assets return on equity $9,000 9,000 $14,000 5,400 19,400 $36,400 Amount $60,000 35,000 25,000 8,000 17,000 600 4,100 $12,300