PROBLEM III RIVERSIDE SWEETS Balance Sheet June 30, 2018 and 2019 2018 2019 Assets Current Assets: Cash $125,000 $ 119,000 Short-term Investment 685,000 650,000 Accounts Receivable 225,000 198,000 Merchandise Inventory 65,000 70,000 Other Current Assets 195,000 191,000 Total Current Assets 1,295,000 1,228,000 Property. Plant, and Equipment, Net 875,000 832,000 Total Assets $2,170,000 $2,060,000 Liabilities Current Liabilities: Accounts Payable $265,000 $251,750 Accrued Liabilities 641,000 725,523 Total Current Liabilities 906,000 977,273 I Long-term Liabilities Bonds Payable 250,000 150,000 Mortgage Payable 150,000 175,000 Total Long-term Liabilities 400,000 325,000 Total Liabilities 1.306.000 1.302,273 Stockholders' Equity Common Stock, $1 par, 225,000 shares Issued and outstanding 225,000 225,000 Paid-in-Capital in Excess of Par 58,000 58,000 Retained Earnings 581,000 474,727 Total Stockholders' Equity 864,000 757,727 Total Liabilities and Stockholders' Equity $2,170,000 $2,060,000 RIVERSIDE SWEETS Income Statement Year Ended June 30, 2019 Net Sales Revenue 2,800,000 Cost of Goods Sold 1,551,600 Gross Profit 1,248,400 Operating Expenses 450,540 Operating Income 797,860 Other Income and (Expenses): Interest Expense (15,000) Income Before Income Taxes 782,860 Income Tax Expense 153.529 Net Income $629.331 Requirements Using the financial statements shown above Compute the following ratios: Be sure to show the formula used for each ratio. 1 Working Capital 2 Current Ratio 3 Acid-Test (Quick) Ratio 4 Cash Ratio 5 Accounts Receivable Turnover 6 Days' Sale in Receivables 7 Inventory Turnover 8 Days' Sales in Inventory 9 Gross Profit Percentage 10 Debt Ratio 11 Profit Margin Ratio 12 Asset turnover ratio