December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities Stockholders' equity: Common stock, $10 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 19,000 230,000 330,000 10,000 589,000 890,000 $1,479,000 $ 280,000 320,000 600,000 $ 120,000 759,000 879,000 $1,479,000 Castile Products, Inc. Income Statement For the Year Ended December 31 Sales $4,000,000 Cost of goods sold 1,323,000 Gross margin 2,677,000 Selling and administrative expenses 650,000 Net operating income 2,027,000 Interest expense 32,000 Net income before taxes 1,995,000 Income taxes (30%) 598,500 Net income $1,396,500 Account balances at the beginning of the year were: accounts receivable $170,000; and inventory $300,000. All sales were on account Required: Compute the following financial data and ratios: 1. Working capital 2. Current ratio (Round your answer to 1 decimal place.) 3. Acid-test ratio (Round your answer to 2 decimal places.) 4. Debt-to-equity ratio (Round your answer to 2 decimal places.) 5. Times interest earned ratio (Round your answer to 2 decimal places.) 6. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 7. Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 8. Operating cycle. (Round your intermediate calculations and final answer to 1 decimal place.) Working capital 2. Current ratio 3. Acid-test ratio 4. Debt-to-equity ratio 5. Timen interest comed ratio 6 Average collection period 7 Average solo period 8. Operating cycle $ 300,000 21 0.89 0.68 03:34 days days days