Lopez Electronics, Inc. Balance Sheet ($000)	TKO Electronics, Inc. Balance Sheet ($000)
Cash	$2,000	$1,500
Accounts receivable	4,500	6,000
Inventories	1,500	2,500
Current assets	$8,000	$10,000
Net fixed assets	16,000	25,000
Total assets	$24,000	$35,000
Accounts payable	$2,500	$5,000
Accrued expenses	1,000	1,500
Short-term notes payable	3,500	1,500
Current liabilities	$7,000	$8,000
Long-term debt	8,000	4,000
Owners equity	9,000	23,000
Total liabilities and owners equity	$24,000	$35,000

	Lopez Electronics, Inc. Income Statement ($000)	TKO Electronics, Inc. Income Statement ($000)
Net sales (all credit)	$48,000	$70,000
Cost of goods sold	-36,000	-42,000
Gross profit	$12,000	$28,000
Operating expenses	-8,000	-12,000
Net operating income	$4,000	$16,000
Interest expense	-1,150	-550
Earnings before taxes	2,850	15,450
Income taxes (40%)	-1,140	-6,180
Net income	$1,710	$9,270

1. Calculate the following ratios for both Lopez and TKO:

Current ratio:

Times interest earned:

Inventory turnover:

Total asset turnover:

Operating profit margin:

Operating return on assets:

Debt ratio:

Average collection period:

Fixed asset turnover:

Return on equity: