Income Statement For the Year Ended December 31, 2009 Revenues: Sales Reveue Less: CGS $ 64,000 25,000 Gross Profit 39,000 Operating Expenses: Office supplies expense $ 700 Depreciation expense: office equipment 9,000 Rent expense 3,825 Insurance expense 1,100 Salaries expense 4,000 18,625 Profit before Interest and Taxes 20,375 Interest expense Profit before taxes Income taxes expense Net Income 420 $ 19,955 7,500 $ 12,455 SILVER LINING LIMITED Balance Sheet December 31, 2009 Assets Cash $ 29,025 Accounts receivable 3,500 Inventory 15,000 Office equipment $ 54,000 Less: Accumulated Depreciation: Office equipment 36,000 18,000 TOTAL ASSETS $ 65,525 Liabilities Accounts payable Note payable (Due 3/1/10) Income taxes payable Unearned consulting services revenue Salaries payable $ 1,400 9,000 2,350 1,000 1,900 420 $ 16,070 Interest payable TOTAL LIABILITIES Shareholders' Equity Share capital (6000 Shares @5$) Par Market Value 8$ $ 30,000 Retained earnings 19,455 TOTAL SHAREHOLDERS' EQUITY $ 49,455 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 65,525 Compute the following (round to one decimal place): 1. Current ratio 2. Quick ratio 3. Working capital 4. Debt ratio 5.Return on assets 6. Return on equity 7. Times Interest Earned 8. EPS 9.P.E 10. Number of times inventory turned over during the year and the average number of days required to turn over inventory (round computation to the nearest day). 11.Number of times accounts receivable turned over during the year and the average number of days required to collect accounts receivable (round computation to the nearest day). 12.Prepare common size Balance sheet for Silver Lining Limited