k #12 Exercise 15-8 Selected Financial Ratios (LO15-2, LO15-3, LO15-4] The financial statements for Castile Products, Inc., are given below. Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash Accounts receivable, net Merchandise inventory Prepaid expenses Total current assets Property and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% Total liabilities Stockholders' equity: Common stock, $5 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 21, eee 210,000 330,000 8, eee 569,600 828,000 $1,389, eee $ 250,000 390,000 640, eee $ 120,000 629,00 749,000 $1,389, eee Castile Products, Inc. Income Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $3,960,000 1,386,000 2,574,000 560,000 2,014,000 39,000 1,975, 800 592,500 $1,382,500 Castile Products, Inc. Incone Statement For the Year Ended December 31 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net Income before taxes Income taxes (30%) Net Income $3,960,000 1,386,eee 2,574,000 560,000 2,014, eee 39,000 1,975,000 592, See $1,382,500 Account balances at the beginning of the year were accounts receivable $230.000; and Inventory, $330,000 All sales were on account 25 Required: Compute the following financial data and ratios: 1. Working capital 2 Current ratio. (Round your answer to 1 decimal place.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) 4. Debt-to-equity ratio. (Round your answer to 2 decimal places.) 5 Times interest earned ratio. (Round your answer to 2 decimal places.) 6. Average collection period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 7 Average sale period. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.) 8 Operating cycle. (Round your intermediate calculations and final answer to 1 decimal place.) 1. Working capital 2 Current ratio 3 Acid-test ratio 4. Debt-to-equity ratio 5 Times interest earned ratio 6. Average collection period 7 Average sale period 8. Operating cycle days days days