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 $620,000 long-term loan from Gulfport State Bank, $160,000 of which will be used to bolster the Cash account and $460,000 of which will be used to modernize equipment. The companys financial statements for the two most recent years follow: Sabin Electronics Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 118,000 $ 270,000 Marketable securities 0 30,000 Accounts receivable, net 633,000 420,000 Inventory 1,065,000 715,000 Prepaid expenses 30,000 34,000 Total current assets 1,846,000 1,469,000 Plant and equipment, net 1,969,200 1,490,000 Total assets $ 3,815,200 $ 2,959,000 Liabilities and Stockholders Equity Liabilities: Current liabilities $ 820,000 $ 420,000 Bonds payable, 12% 850,000 850,000 Total liabilities 1,670,000 1,270,000 Stockholders' equity: Common stock, $15 par 630,000 630,000 Retained earnings 1,515,200 1,059,000 Total stockholders equity 2,145,200 1,689,000 Total liabilities and equity $ 3,815,200 $ 2,959,000 Sabin Electronics Comparative Income Statement and Reconciliation This Year Last Year Sales $ 5,600,000 $ 4,710,000 Cost of goods sold 3,995,000 3,570,000 Gross margin 1,605,000 1,140,000 Selling and administrative expenses 677,000 572,000 Net operating income 928,000 568,000 Interest expense 102,000 102,000 Net income before taxes 826,000 466,000 Income taxes (30%) 247,800 139,800 Net income 578,200 326,200 Common dividends 122,000 101,000 Net income retained 456,200 225,200 Beginning retained earnings 1,059,000 833,800 Ending retained earnings $ 1,515,200 $ 1,059,000 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 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

This year & last year a. The amount of working capital.

This year & last year b. The current ratio. (Round your answers to 2 decimal places.)

This year & last year c. The acid-test ratio. (Round your answers to 2 decimal places.)

This year & last year d. The average collection period. (The accounts receivable at the beginning of last year totaled $370,000.) (Round your intermediate calculations and final answers to 1 decimal place. Use 365 days in a year.) (days)

This year & last year e. The average sale period. (The inventory at the beginning of last year totaled $620,000.) (Round your intermediate calculations and final answers to 1 decimal place. Use 365 days in a year.) (days)

This year & last year f. The operating cycle. (Round your intermediate calculations and final answer to 1 decimal place.) ( days)

This year & last year g. The total asset turnover. (The total assets at the beginning of last year were $2,919,000.) (Round your answers to 2 decimal places.)

This year & last year h. The debt-to-equity ratio. (Round your answers to 3 decimal places.)

This year & last year i. The times interest earned ratio. (Round your answers to 1 decimal place.)

This year & last year j. The equity multiplier. (The total stockholders equity at the beginning of last year totaled $1,679,000.) (Round your answers to 2 decimal places.)