* = Inventory (B).12 (3 ) 90,000 110,000 60,000 50,000 The following ratios have been computed for Al-Aqsa company for 2012 Profit Margin = 20% Times interest earned = 9 times Receivables turnover = 3 Times Acid test ratio = 2.1 Current ratio = 3:1 Debt to total assets ratio = 20% For 2011 Cash = 450,000 , Marketable Securities = 25,000, A/R (net) = 40,000 Inventory = 50,000 Fixed assets (net) = 160,000, Total assets = 320,000 Account payable = 30,000 Short term notes payable = 35000 Bonds payable = 20,000 , Common stock = 200,000 Retained earnings = 35,000 Total liabilities and Equity = 320,000 For 2012 Cash = 30,000, Marketable Securities = 10,000, A/R (net) = A. Inventory = B , Fixed Assets = 200,000 Total Assets = K A/P =C, Short term notes payable = 400,000 , Bonds payable =D Common stock = 220 000 Retained earnings = 60,000, Total liabilities and equity = L Items of income statement for December 31,2012 Net Sales = 150,000 ,Cost of goods sold = 75,000 , Depreciation expense = E, Interest Expense = 5000, Selling Expenses = 8000, Administrative expenses = 12000, Total operating expenses = F, Income before Taxes = G, Income Tax expense = H Net income