Mike's Masks Balance Sheet At Decemer 31, 2020

Assets Cash $95

Accounts Receivable 60

Inventory 125

Prepaid Insurance 40

Property, plant, and equipment (at carrying amount) 350

Total Assets $670

Liabilities and Stockholder's Equity

Accounts Payable $85

Long Term Notes Payable 120

Preferred Shares 50

Common Shares 300

Retain Earnings 115

Total Liabilities and Stockholder's Equity $670

Mike's Masks

Income Statement For Year Ended Decemer 31, 2020

Sales $425

Cost of goods Sold 207

Gross Profit 218

Operating Expenses Wages $66

Depreciation 10 76

Income from Operations 142

Interest Expense 11

Income before income taxes 131

Income Tax Expense 14

Net Income (Loss) $117

Additional Information:

a. 70% of sales are on credit

b. Average of balance sheet items is equal to amounts at December 31

c. Dividends have been paid in total of $12

d. The number of common shares outstanding is 20

Calculate the following Ratios: Round Answers 2 decimal points

1.Current ratio

2. Return on total assets

3. Sales to total assets

4. Acid test ratio

5. Times interest earned

6. Earnings per share

7. Return on shareholders' equity