make the calculations. Be sure to use cell references.

Write one sentence next to each ratio you calculated in Question 1 describing what that number means in words.

Balance Sheet ($000) Ratios Calculation Assets Liabilities and Equity Liquidity \begin{tabular}{lrr} Cash & $ & 1,500 \\ Marketable securities & $ & 2,500 \\ Accounts receivable & $ & 15,000 \\ Inventory & $ & 33,000 \\ Total current assets & $ & 52,000 \\ Fixed assets (net) & $ & 35,000 \\ \hline Total assets & $ & 87,000 \\ \hline \end{tabular} \begin{tabular}{lrr} Accounts payable & $12,500 \\ Notes payable & $ & 12,500 \\ Total current liabilities & $ & 25,000 \\ Long-term debt & $ & 22,000 \\ Total liabilities & $47,000 \\ \hline Common stock (par value) & $ & 5,000 \\ Contributed capital in excess of par & $ & 18,000 \\ Retained earnings & $417,000 \\ Total stockholders' equity & $40,000 \\ Total liabilities and stockholders' equity & $87,000 \\ \hline \end{tabular} Current Quick \begin{tabular}{|l|} \hline \\ \hline \end{tabular} Asset Management Average collection period Inventory turnover Fixed-asset turnover Total asset turnover \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \end{tabular} Financial Leverage \begin{tabular}{lrr} Income Statement ($000) \\ & & \\ Sales (all on credit) & $ & 130,000 \\ Cost of sales & $ & 103,000 \\ Gross margin & $ & 27,000 \\ Operating expenses* & $ & 16,000 \\ EBIT & $ & 11,000 \\ Interest & $ & 3,000 \\ EBT & $ & 8,000 \\ Income Tax & $ & 3,000 \\ EAT & $5,000 \\ \hline \end{tabular} Other Info imes interest earned Fixed charge coverage \begin{tabular}{|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Book value/share $8.00 Number of shares 5,000inthousandsGrossprofitmarginNetprofitmarginReturnoninvestmentReturnonstockholdersequityProfitability \begin{tabular}{|l|} \hline \\ \hline \\ \hline \\ \hline \\ \hline \end{tabular} Market-based Price-to earnings * includes 200 in lease payments Market price-to-book