Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patents. Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is requesting a $500,000 long-term loan from Gulfport State Bank, $100,000 of which will be used to bolster the Cash account and $400,000 of which 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. 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. (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 $250,000.) (Round your intermediate calculations and final answers to 1 decimal place. Use 365 days in a year.) e. The average sale period. (The inventory at the beginning of last year totaled $500,000.) (Round your intermediate calculations and final answers to 1 decimal place. Use 365 days in a year.) f. The operating cycle. (Round your intermediate calculations and final answers to 1 decimal place. Use 365 days in a year.) g. The total asset turnover. (The total assets at the beginning of last year were $2,420,000.) (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 $1,420,000.) (Round your answers to 2 decimal places.) \begin{tabular}{|l|l|l|l|l|} \hline & \multicolumn{2}{|c|}{ This Year } & \multicolumn{2}{c|}{ Last Year } \\ \hline a. Working capital & & & & \\ \hline b. Current ratio & & & & \\ \hline c. Acid-test ratio & & & & \\ \hline d. Average collection period & & days & & days \\ \hline e. Average sale period & days & days \\ \hline f. Operating cycle & & & & \\ \hline g. Total asset turnover & & & & \\ \hline h. Debt-to-equity ratio & & & & \\ \hline i. Times interest earned ratio & & & \\ \hline j. Equity multiplier & & & & \\ \hline \end{tabular} Sabin Electronics \begin{tabular}{|l|r|r|r|r|} \hline \multicolumn{4}{|c|}{ Sabin Electronics } \\ \hline \multicolumn{2}{|c|}{ Common-Size Income Statements } \\ \hline Sales & \multicolumn{2}{|c|}{ This Year } & \multicolumn{2}{c|}{ Last Year } \\ \hline Cost of goods sold & & % & & % \\ \hline Gross margin & & & & \\ \hline Selling and administrative expenses & 0.0 & & 0.0 & \\ \hline Net operating income & & & & \\ \hline Interest expense & 0.0 & 0.0 & \\ \hline Net income before taxes & & & & \\ \hline Income taxes & 0.0 & & 0.0 & \\ \hline Net income & & & 0.0 & % \\ \hline \hline \end{tabular}