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Shopwise Trading 2015 Financial Ratios Directions: Compute for the financial ratios of Shopwise Trading using the data from 2015.| Ratio Answer and Computation 1. Current Ratio 2. Quick Ratio 3. Debt Ratio 4. Equity Ratio 5. TIE Ratio 6. Gross Profit Ratio 7. Operating Profit Ratio 8. Net Profit Ratio Shopwise Trading Comparative Income Statements For the years ended 2016 and 2015 2016 2015 Amount Net Sales 1,080,000 900,000 Less: Cost of Goods Sold 636,000 504,000 Gross Profit 444,000 396,000 Less: Operating Expenses 291,600 204,000 Operating Income 152,400 192,000 Less: Interest Expense 28,800 36,000 Income Before Income Tax 123,600 156,000 Less: Income Tax 43,260 54,600 Net Income 80,340 101,400 %% 20.0% 26.2% 12.1% 42.9% -20.6% -20.0% -20.8% -20.8% -20.8% Shopwise Trading Comparative Balance Sheets For the December 31, 2016 and December 31, 2015 2016 2015 Amount Cash 208,000 200,000 Inventory 260,000 145,600 Accounts Receivable 72.000 126,000 Total Current Assets 540,000 471,600 Property and Equipment 600.000 560,400 TOTAL ASSETS 1,140,000 1,032,000 4.0% 78.6% -42.9% 14.5% 7.1% 10.5% 19.1% -20.0% -9.3% Liabilities and Stockholders' Equity LIABILITIES Notes Payable 134,400 112,800 Long-term debts 240,000 300,000 Total Liabilities 374,400 412,800 STOCKHOLDERS' EQUITY Preferred Stock 120,000 120,000 Common Stock 300,000 240,000 Additional Paid-in Capital 84,000 48,000 Retained Earnings 261,600 211,200 Total Stockholders' Equity 765,600 619,200 TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY 1,140,000 1,032,000 0.0% 25.0% 75.0% 23.9% 23.6% 10.5%