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 $640,000 long-term loan from Gulfport State Bank, $170,000 of which will be used to bolster the Cash account and $470,000 of which will be used to modernize equipment. The companys financial statements for the two most recent years follow:

assets	this year	last year
cash	$126,000	$290,000
Marketable securities	0	11,000
Acct Recievable	659,000	440,000
Inventory	1,020,000	735,000
prepaid expenses	34,000	36,000
Total current assets	1,839,000	1,512,000
Plant and Equip. net	2,084,600	1,470,000
Total assets	3,923,600	2,982,000
Liabilities, SHE, Stock
Current Liabilities	870,000	440,000
Bonds Payable, 12%	800,000	800,000
Total Liabilities	1,670,000	1,240,000
Common Stock, $15 par	690,000	690,000
Retained Earnings	1,563,600	1,052,000
Total SH Equity	2,253,600	1,742,000
Total Liabilities Equity	3,923,600	2,982,000

Sales	5,700,000	4,770,000
COGS	4,015,000	3,590,000
Gross Margin	1,685,000	1,180,000
Selling Admin Expenses	681,000	576,000
NOI	1,004,000	604,000
Interest Expense	96,000	96,000
Net Income B4 taxes	908,000	508,000
Income Taxes (30%)	272,400	152,400
Net income	635,600	355,600
Common Dividends	124,000	103,000
Net Income Retained	511,600	252,600
Beg. Retained Earnings	1,052,000	799,400
End Retained Earnings	1,563,600	1,052,000

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 3/10, 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.) 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 $390,000.) (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 $640,000.) (Round your intermediate calculations and final answers to 1 decimal place. Use 365 days in a year.)

f.) The operating cycle

g.)The total asset turnover. (The total assets at the beginning of last year were $2,942,000.) ( round answer to 2 decimals)

h.) The debt to equity ratio

i.)Times interest earned ratio

j.) The equity multiplier