Please answer problems 3,8,9,&11. Please show all work for a thorough understanding. Handwriting MUST be LEGIBLE.

PART 2 Financial Tools 7.700,000 1,000,000 2,100,000 100,000 $ 10 par 150,000 $ 300,000 $ 620,000 130,000 Retained earnings Land Accounts payable Taxes due Common stock Common shares outstanding Current portion of long-term debt 3. Fill in the blanks _) with the correct entries. Liabilities and Assets Stockholders' Equity Current assets Current liabilities Cash $ 250,000 Accounts payable Accounts receivable Notes payable to (less banks allowance for doubtful accounts Accrued wages of $20,000) 1,320,000 Taxes owed Inventory 1,410,000 Total current liabilities Total current assets Long-term debt Land Plant and equipment Stockholders' equity ($2,800,000 less Common stock accumulated ($1 par, 750,000 depreciation shares authorized 2,110,000 700,000 outstanding Total assets $5,390,000 Retained earnings Total stockholders' equity Total liabilities and equity 100,000 $1,250,000 1,000,000 $3,140,000 8. Given the following information, compute the current and quick ratios: Cash Accounts receivable Inventory Current liabilities Long-term debt Equity $100,000 357,000 458,000 498,000 610,000 598,000 9. If a firm has sales of $25,689,000 a year, and the average collection period for the industry is 45 days, what should this firm's accounts receivable be if the firm is comparable to the industry? 10. ABCD Corporation has credit sales of $10,640,000 and receivables of $1,520,000. a. What is the receivables turnover? b. What is the average collection period (days sales outstanding)? c. If the company offers credit terms of 30 days, are its receivables past due? 11. A firm with sales of $500,000 has average inventory of $200,000. The industry average for inventory turnover is four times a year. What would be the reduction in inventory if this firm were to achieve a turnover com- parable to the industry average? 12. A firm with annual sales of $8,700,000 increases its inventory turnover from 4.5 to 6.0. How much would the company save annually in interest expense if the cost of carrying the inventory is 10 percent? 13. Two firms have sales of $1 million each. Other financial information is as follows: Firm EBIT Interest expense Income tax Debt Equity $150,000 20,000 50,000 400,000 600,000 $150,000 75,000 30,000 700,000 300,000