Question 3: Comparative financial statement data of Lannister Inc. are as follows: 2019 Net sales $687,000 Cost of goods sold 375,000 Gross profit 312,000 Operating expenses 129,000 Income from operations 183,000 Interest expense 37,000 Income before income tax 146,000 Income tax expense Net income 36,000 110,000 Lannister Inc. Comparative Balance Sheet December 31, 2019 and 2018 2019 2018 Current assets: Cash Current receivables, net $45,000 212,000 158,000 Inventories Prepaid expenses 297,000 281,000 4,000 Total current assets 558,000 Property, plant and equipment, net 285,000 Total assets $843,000 Accounts payable 150,000 105,000 Other current liabilities 135,000 Total current liabilities $285,000 Long-term liabilities 243,000 Total liabilities 528,000 Common shareholders' equity, no par 315,000 Total liabilities and shareholders' equity $843,000 Other information: 1. Common shares outstanding: 18,000 during 2019. 2. All sales on credit. Requirements: 1) Compute the following ratios for 2019 a. Current ratio b. Quick ratio (acid test) c. Receivables turnover and days' sales outstanding (rounded to the nearest whole day) d. Inventory turnover and days inventory outstanding (rounded to the nearest whole day) e. Accounts payable turnover and days' payable outstanding (rounded to the nearest whole day). f. Cash conversion cycle (in days) g. Times-interest-earned ratio h. Earnings per share Answer: i. Debt ratio j. Net Profit Margin Current ratio Quick ratio (acid test) Receivables turnover and days' sales outstanding (rounded) Inventory turnover & days inventory outstanding (rounded) Accounts payable turnover and days' payable outstanding (rounded). Cash conversion cycle (in days) Times-interest-earned ratio Earnings per share Debt Ratio Net Profit Margin 2019 all numbers in thousands