Question #3 Identify and use ratios to analyze liquidity. (7 marks)

Selected information from the comparative financial statements of Montero Corporation for the year ended December 31, appears below:

2021 2020

Accounts receivable$ 35,000$ 20,000

Inventory50,00042,000

Total assets285,000259,000

Current liabilities44,00052,000

Non-current liabilities150,000100,000

Net credit sales450,000478,000

Cost of goods sold218,000242,000

Interest expense18,0009,000

Income tax expense25,00029,000

Profit68,00077,000

Required:

Answer the following questions relating to the year ended December 31, 2021. Show calculations.

a)The inventory turnover for 2021 is ______.

b)The interest coverage in 2021 is ______.

c)The debt to total assets for 2021 is ______.

d)The receivables turnover for 2021 is ______.

e)The return on assets for 2021 is ______.