Exhibit 4-1 Given the following information for Blue Bell Company for last year: $5,200,000 2,080,000 240,000 280,000 420,000 40% $1,800,000 2,400,000 Net sales (all on account) Cost of goods sold Interest expense Income tax expense Net income Income tax rate Total assets: January 1 December 31 Shareholders' equity (all common): January 1 December 31 Current ts, December 31 Quick assets, December 31 Current liabilities, December 31 Net accounts receivable: January 1 December 31 Inventory: January 1 December 31 1,500,000 1,600,000 700,000 400,000 300,000 200,000 180,000 210,000 250,000 Refer to Exhibit 4-1. Blue Bell's current ratio at December 31 was 2.33 times O 1.33 times 3.67 times Exhibit 5-2 The following is an income statement from the financial records of Peace, Love and Joy Company for the year ended December 31, 2015: Income Statement Sales (net) Cost of Goods Sold Gross Profit Operating expenses Operating Income Interest revenue $ 245,675 (67,500) $ 178,175 (125,000) $ 53,175 5,600 (8,750) $ 50,025 (15,008) $ 35,017 Interest expense Income before taxes Income tax expense Net Income Refer to Exhibit 5-2. Compute operating margin for Peace, Love, and Joy Company. 14.25% 20.36% 19.65% 21.64% Exhibit 5-2 The following is an income statement from the financial records of Peace, Love and Joy Company for the year ended December 31, 2015: Income Statement Sales (net) Cost of Goods Sold Gross Profit Operating expenses Operating Income Interest revenue $ 245,675 (67,500) $ 178,175 (125,000) $ 53,175 5,600 (8,750) $ 50,0251 (15,008) $ 35,017 Interest expense Income before taxes Income tax expense Net Income Refer to Exhibit 5-2. Compute earnings-based interest coverage for Peace, Love, and Joy Company. 6.72 times 5.72 times 16.88 times 6.08 times