Presented below is information related to Leland, Inc. LELAND INC. Balance Sheet 31-Dec-12 Cash $45,000 Receivables $110,000 Less Allowance 15,000 95,000 Inventory 170,000 Prepaid Insurance 8,000 Land 20,000 Equipment (net) 150,000 Total $488,000 Notes Pay. (st) $50,000 Accts. Pay. 32,000 Accrued Liab. 5,000 Common St.($5par) 260,000 Retained Earnings 141,000 Total $488,000 Instructions (a)Compute the following ratios or relationships of Leland Inc. Assume that the ending account balances are representative unless the information provided indicates differently. (1)Current ratio. (2)Inventory turnover. (3)Receivables turnover. (4)Earnings per share. (5)Profit margin on sales. (6)Rate of return on assets on December 31, 2012. (b)Indicate for each of the following transactions whether the transaction would improve, weaken, or have no effect on the current ratio of Leland Inc. at December 31, 2012. (1)Write off an uncollectible account receivable, $2,200. (2)Repurchase common stock for cash. (3)Pay $40,000 on notes payable (short-term). (4)Collect $23,000 on accounts receivable. (5)Buy equipment on account. (6)Give an existing creditor a short-term note in settlement of account. Leland Inc. Income Statement For the Year Ended December 31, 2012 Sales $1,400,000 Cost of goods sold Inv. Jan. 1, 2012 $200,000 Purchases 790,000 Cost of goods available for sale 990,000 Inv. Dec. 31, 2012 (170,000) Cost of Goods Sold 820,000 Gross profit on sales 580,000 Operating expenses 370,000 Net Income 210,000