Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had s Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is r $650,000 long-term loan from Gulfport State Bank, $175,000 of which will be used to bolster the Cash account and $ will be used to modernize equipment. The company's financial statements for the two most recent years follow: During the past year, the company introduced several new product lines and raised the selling prices on a number of old product lines in order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several new territories. Sales terms are 2/10,n/30. All sales are on account. Required: 1. To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and last year: a. The amount of working capital. b. The current ratio. c. The acid-test ratio. d. The average collection period. (The accounts receivable at the beginning of last year totaled $400,000.) e. The average sale period. (The inventory at the beginning of last year totaled $650,000.) f. The operating cycle. g. The total asset turnover. (The total assets at the beginning of last year were $3,024,000.) h. The debt-to-equity ratio. i. The times interest earned ratio. a. The amount of working capital. b. The current ratio. (Round your answers to 2 decimal places.) c. The acid-test ratio. (Round your answers to 2 decimal places.) d. The average collection period. (The accounts receivable at the beginning of last year totaled $400,000.) (Round your intermediate calculations and final answers to 2 decimal place. Use 365 days in a year.) e. The average sale period. (The inventory at the beginning of last year totaled $650,000.) (Round your intermediate calculations and final answers to 2 decimal place. Use 365 days in a year.) f. The operating cycle. (Round your intermediate calculations and final answers to 2 decimal place. Use 365 days in a year.) g. The total asset turnover. (The total assets at the beginning of last year were $3,024,000.) (Round your answers to 2 decimal places.) h. The debt-to-equity ratio. (Round your answers to 2 decimal places.) i. The times interest earned ratio. (Round your answers to 2 decimal places.) j. The equity multiplier. (The total stockholders' equity at the beginning of last year totaled $1,854,000.) (Round your answers to 2 decimal places.) 1 10 points eBook Print References \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Sabin Electronics } \\ \hline \multicolumn{5}{|c|}{ Common-Size Balance Sheets } \\ \hline & This Year & & Last Year & \\ \hline \multicolumn{5}{|l|}{ Assets } \\ \hline \multicolumn{5}{|l|}{ Current assets: } \\ \hline Cash & & % & & % \\ \hline \multicolumn{5}{|l|}{ Marketable securities } \\ \hline \multicolumn{5}{|l|}{ Accounts receivable, net } \\ \hline \multicolumn{5}{|l|}{ Inventory } \\ \hline \multicolumn{5}{|l|}{ Prepaid expenses } \\ \hline Total current assets & 0.0 & & 0.0 & \\ \hline Plant and equipment, net & 52.1 & & & \\ \hline Total assets & 52.1 & % & 0.0 & % \\ \hline \multicolumn{5}{|c|}{ Liabilities and Stockholders' Equity } \\ \hline \multicolumn{5}{|l|}{ Liabilities: } \\ \hline Current liabilities & & % & & % \\ \hline \multicolumn{5}{|l|}{ Bonds payable, 12%} \\ \hline Total liabilities & 0.0 & & 0.0 & \\ \hline \multicolumn{5}{|l|}{ Stockholders' equity: } \\ \hline \multicolumn{5}{|l|}{ Common stock, \$15 par } \\ \hline \multicolumn{5}{|l|}{ Retained earnings } \\ \hline Total stockholders' equity & 0.0 & & 0.0 & \\ \hline Total liabilities and equity & 0.0 & % & 0.0 & % \\ \hline \end{tabular} Present the income statement in common-size format down through net income for both this year and last year. (Round your answers to 1 decimal place.)