Parking Mart International Corporation

	Balance Sheet
	December 31, 2020 and 2019
	2020	2019
Current assets
Cash	$16,000	$5,000
Short-term investments	8,000	9,000
Accounts receivable, net	29,000	23,000
Inventory	37,000	35,000
Prepaid expenses	4,000	3,000
Total current assets	$94,000	$75,000
Property, plant, and equipment, net	33,300	35,000
Other assets	27,000	22,500
Total assets	$154,300	$132,500
Current liabilities
Short-term borrowings	$32,400	$12,900
Accounts payable	22,000	22,500
Total current liabilities	$54,400	$35,400
Non-current debt	37,500	33,000
Total liabilities	$91,900	$68,400
Shareholders' equity
Common shares	$20,000	$20,000
Retained earnings	42,400	44,100
Total shareholders' equity	$62,400	$64,100
Total liabilities and shareholders' equity	$154,300	$132,500
Additional information for year 2019:
Net income from operations	$23,600
Interest expense	$2,650
Depreciation expense	$1,700
Cost of goods sold	$146,000
Net credit sales	$385,000
Industry bench marks:
current ratio 1.50
acid test 1.00
debt ratio .62
inventory turnover 4.10
receivable turnover 30.1

Required:
Calculate the following 2020 ratios for the company:
Current ratio
Acid test
Inventory turnover
Accounts receivable turnover
Debt ratio
Times interest earned
Based upon your calculations comment on the company's ability to:
1) pay their current liabilities
2) meet their overall liabilities
3) to sell inventory and collect accounts receivables