Dana Dairy Products Key Ratios Industry Average Actual 2017 Actual 2018 Current Ratio 1.3 1.0 Quick Ratio 0.8 0.75 Average collection period 23 days 30 days Inventory Turnover 21.7 19 Debt Ratio 64.7% 50% Times Interest Earned 4.8 5.5 Gross Profit Margin 13.6% 12.0% Net Profit Margin 1.0% 0.5% Return on total assets 2.9% 2.0% Return on Equity 8.2% 4.0% Dana Dairy Products Income Statement For the Year Ended December 31, 2018 Sales Revenue $100,000 Less: Cost of Goods Sold 87,000 Gross Profits 13,000 Less: Operating Expenses 11,000 Operating Profits 2,000 Less: Interest Expense 500 Net Profits Before Taxes 1,500 Less: Taxes (40%) 600 Net Profits After Taxes 900 Dana Dairy Products Balance Statement For the Year Ended December 31, 2018 Assets Cash $ 1,000 Accounts Receivable 8,900 Inventories 4,350 Total Current Assets 14,250 Gross Fixed Assets $35,000 Less: Accumulated Depreciation 13,250 Net Fixed Assets 21,750 TOTAL ASSETS 36,000 Liabilities & Stockholders Equity Accounts Payable $ 9,000 Accruals 6,675 Total Current Liabilities 15,675 Long-Term Debt 4,125 Total Liabilities 19,800 Common Stock 1,000 Retained Earnings 15,200 Total Stockholders Equity 16,200 TOTAL LIABILITIES & EQUITY 36,000 The net working capital for Dana Dairy Products in 2018 is ________. Select one: a. $14,250 b. $10,325 c. $1,425 d. -$1,425