Revenues: Sales Reveue SILVER LINING LIMITED Income Statement For the Year Ended December 31, 2009 $ 64,000 Less: CGS 25,000 Gross Profit Operating Expenses: 39,000 Office supplies expense $ 700 Depreciation expense: office equipment 9,000 Rent expense 3,825 Insurance expense 1,100 Salaries expense 4,000 18,625 Profit before Interest and Taxes 20,375 Interest expense Profit before taxes Income taxes expense Net Income 420 $ 19,955 7.500 $ 12,455 Assets Cash Accounts receivable Inventory Office equipment SILVER LINING LIMITED Balance Sheet December 31, 2009 Less: Accumulated Depreciation: Office equipment TOTAL ASSETS $ 29,025 3,500 15,000 $ 54,000 36,000 18,000 $ 65,525 Liabilities Accounts payable Note payable (Due 3/1/10) Income taxes payable Unearned consulting services revenue Salaries payable Interest payable TOTAL LIABILITIES $ 1,400 9,000 2,350 1,000 1,900 420 $ 16,070 Shareholders' Equity Share capital (6000 Shares @5$) Par Market Value 8$ $ 30,000 Retained earnings 19,455 TOTAL SHAREHOLDERS' EQUITY $ 49,455 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 65,525 Compute the following (round to one decimal place): 1. Current ratio 2. Quick ratio 3. Working capital 4. Debt ratio 5.Return on assets 6. Return on equity 7. Times Interest Earned 8. EPS 9.P.E 10. Number of times inventory turned over during the year and the average number of days required to turn over inventory (round computation to the nearest day). 11.Number of times accounts receivable turned over during the year and the average number of days required to collect accounts receivable (round computation to the nearest day). 12.Prepare common size Balance sheet for Silver Lining Limited