Exercise 6 Presented below are the financial statements of Rainbow Trading Rainbow Trading Statement of Financial Position As of December 31 2017 2016 Assets Current Assets Casti Trade Receivables Merchandise Inventory Prepaid Expenses Total Current Assets Property, plant, and Equipment (net) Total Assets P 58.000 228.000 226,000 17.000 524,000 2.050.000 1.524.000 64,000 170,000 222,000 16 000 472.000 836.000 128,000 Liabilities and Owner's Equity P284,000 252.000 Current Liabilities Trade Payables Non-Current Liabilities Loan Payable Total Liabilities Owner's Equity Total Liabilities and Owner's Equity 578.000 862,000 712.000 P1.574,000 396,000 648,000 640.000 P1288,000 2016 Hainbow Trading Income Statement Fortbe Year Ended December 31 (in millions) 2017 Net Sales P1.716,000 Cost of Good Sold 1026.000 Grou. Proti P 690,000 Selling and Administrative pentes 488,000 Operating Income P 202.000 forrest Expense 40,000 Income before income taxes P 162000 Income Tax Expense 66.000 Net income 296000 P1606,000 1.013,000 P 588,000 474.000 114,000 28,000 P 36.000 34,000 52.000 Required: Compute the following ratios for 2017 1. Current Ratio 2 Quick Ratio 3. Receivable Turnover Average Collection Period 5 Inventory Turnover Average Sales Period 7. Working Capital Debt Ratio 9. Equity Ratio 10. Debt to Equity Ratio 11. Times Interest Earned 12 Gross Profit Ratio 12. Operating Profit margin 14. Netruit Martin 15 Return on Amets (20-ANCA RATOS