During the past year, the company introduced several new product lines and raised the selling prices on a number of old product lines in order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several new territories. Sales terms are 2/10, n/30. All sales are on account. Assume that the following ratios are typical of firms in the electronics industry: Current ratio 2.5 to 1 Acid-test (quick) ratio 1.3 to 1 Average age of receivables 18 days Inventory turnover in days 60 days Debt-to-equity ratio 0.90 to 1 Times interest earned 6.0 times Return on total assets 13 % Priceearnings ratio 12 Required: 1. To assist the Gulfport Bank in making a decision about the loan, compute the following ratios for both this year and last year (Use 365 days a year. Round your intermediate calculations to 1 decimal place. Round Debt-to-equity ratio to 3 decimal places and other answers to 2 decimal places.): a. The amount of working capital. b. The current ratio. c. The acid-test (quick) ratio. d. The average age of receivables (the accounts receivable at the beginning of last year totalled $246,000). e. The inventory turnover in days (the inventory at the beginning of last year totalled $492,000). f. The debt-to-equity ratio. g. The times interest earned.

2.	For both this year and last year:

(a)	Present the balance sheet in common-size format. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 1 decimal place.)
	Present the income statement in common-size format down through net income. (Input all values as positive values. Round your answers to 1 decimal place.)