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Please review and complete the attached question Question 40: The nancial statements for IICastile Products, Inc, are givenbelovr. Calile Products, Inc. Balance Sheet December 31

Please review and complete the attached question

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Question 40: The nancial statements for IICastile Products, Inc, are givenbelovr. Calile Products, Inc. Balance Sheet December 31 Assets Current assets Cash. ___________________________________________________________________ $ 6,500 Awaits receivable net ____________________________________ 35 000 Merchandise inventory _______________________________________ T0 000 Prepaid expenses ________________________________________________ 3 500 Total current assets _______________________________________________ 115,000 Property and equipment net _________________________________ 135,000 Total assets ____________________________________________________________ $300,000 Liabilities and Stockholders\" Equity Liabili' ' 'ties: current liabilities _______________________________________________ $ 50,000 Bonds payable, 10% ___________________________________________ 30,000 Total liabilities ______________________________________________________ 130,000 Stockholders' equity. Common stock, $5 par value _____________________________ 30,000 Retained earnings _______________________________________________ 140 000 Total stockholds' equity _____________________________________ 120,000 Total liabilities and stockholdus' equity .............. M Castile Products, Inc. Incense Statement For the Year EldedDecemlier 31 Sales .................................................................... $420,000 Cost of goods sold ______________________________________________ 292,500 Gross margin ....................................................... 12?,500 Selling and administrative expenses ___________________ 39,500 Net operating income __________________________________________ 313,000 Interest expense ___________________________________________________ 3,000 Net income before taxes ______________________________________ 30,000 Income taxes (30%) ____________________________________________ 9' 000 Net income __________________________________________________________ m Aeooimt balances at the beginning of the year were acemmts receivable, $25,000; and inventory, 560,000. All sales were on account. Required: ICompete the following nancial data and ratios: 1. Wmhn' g capital 5. Times interest earned ratio 2. Current ratio I5. Average collection period 3. Acidtest ratio TI". Average sale period 4. Debttoequity ratio 8 Operating cycle

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