Presented below are the financial statements of Sisco Plastics Inc. 

Sisco Plastics Inc. 

Comparative Balance Sheets September 30 

Assets 2021 2020 

Current Assets Cash $92000 $42980 

Short Term Investments 29500 22500 

Accounts Receivable 56900 22300 

Inventory 102,300 90220 

Long Term Assets Long term Investments 96,300 103000 

Equipment 198,000 215000 

Accumulated depreciation equipment (50000) (48000) 

Total Assets $525,000 $448,000 

Current Liabilities Accounts Payable $85,300 $30200 

Accrued Expenses payable 26700 15000 

North South University ASy School of Business, BBA 3 Long Term Liabilities Bonds Payable 97,300 79,570 

Stockholders’ Equity Common Stock 150,000 165500 

Retained Earnings 165,700 157,730 

Total liabilities and stockholders’ equity $525,000 $448,000 

Sisco Plastics Inc. 

Income Statement 

For the Year Ended September 30, 2021 

Sales Revenue Less: Sales Returns and Allowances 

Net Sales $315,620 47,000 268,620

 Cost of Goods Sold 138,260 

Gross Profit 130,360

Operating Expenses excluding depreciation 75,700 

Depreciation Expense 12000 

Income Tax Expense Interest expense 18,120 10,163 

Loss on disposal of plant assets 0 

Net Income 14,377 

Instructions: 

Compute the following ratios for 2021 using the data given above. 

a) Acid-Test Ratio 

b) Days in inventory 

c) Times interest earned 

d) Asset Turnover