EXERCISE 15-8 Selected Financial Ratios [LO15-2, L015-3, L015-4] The financial statements for Castile Products, Inc, are given below Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash.... Accounts recelvable, net Merchandise inventory.... Prepaid expenses $ 6,500 35,000 70,000 3,500 115,000 Total assets .. $300,000 Liabilities and Stockholders' Equity Liabilities Current liabilities Bonds payable, 10% . " $ 50,000 80,000 130,000 Total tiabalities Stockholders' equity $30,000 140,000 170.000 $300,000 Common stock, $5 per value Retained earnings Total stockholders equity Total llabilities and equity Castilie Products, Inc Income Statement For the Year Ended December 31 $420,000 292,500 127,500 Sales Gross margin Selling and administrative expenses...89,500 Interest expense..O.. Net income before taxes Income taxes (30%) Net income ...30,000 9,000 5 21.000 Account balances at the beginning of the year were accounts receivable, $25,000, and inventory, $60,000. All sales were on account. Required: Compute the following financial data and ratios 1. Working capital. 2 Current ratio 3 Acid-test ratio 4 Debt-to-equity ratio 5. Times interest eaned ratio 6 Average collection period 7 Average sale period 8 Operating cycle