SABIN ELECTRONICS Comparative Income Statement This Year Last Year Sales $ 4,200, 090 $ 3, 650,006 Less: Cost of goods sold 3,227, 000 2, 880,000 10 Gross margin 973, 060 770,000 points Less: Operating expenses 546, 000 457,000 Net operating income 127,000 313, 000 Less: Interest expense 36, 000 36,000 Net income before taxes 391, 000 277,000 Less: Income taxes (30%) 117, 300 33,100 eBook Net income 273, 700 193,900 Dividends paid: Preferred dividends 20, 000 20,000 Common dividends 75, 600 52,700 Print Total dividends paid 95, 600 82, 700 Net income retained 178, 160 111, 200 Retained earnings, beginning of year 566, 400 455, 200 Retained earnings, end of year $ 744,500 $ 566, 400 References During the past year, the company introduced several new product lines and raised the selling prices on a number of old product lines n order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several new territories. Sales terms are 2/10, n/30. All sales are on account. Assume that the following ratios are typical of firms in the electronics industry: Current ratio 2.5 to 1 Acid-test (quick) ratio 1.3 to 1 Average age of receivables 18 days Inventory turnover in days 60 days Debt- to-equity ratio 0.90 to 1 Times interest earned 6.0 times Return on total assets 13% Price-earnings ratio 12 Required: 1. To assist the Gulfport Bank in making a decision about the loan, compute the following ratios for both this year and last year (Use 365 days a year. Round your intermediate calculations to 1 decimal place. Round Debt-to-equity ratio to 3 decimal places and other answers to 2 decimal places.): a. The amount of working capital. b. The current ratio. c. The acid-test (quick) ratio. d. The average age of receivables (the accounts receivable at the beginning of last year totalled $186,000). The inventory turnover in dave (the inventory at the heninning of last vear totalled $37 0001 Mc Graw Prey. 1 of 1 Next >Check my work Current ratio 2.5 to 1 Acid-test (quick) ratio 1.3 to 1 Average age of receivables 18 days 10 Inventory turnover in days 60 days points Debt-to-equity ratio 0.90 to 1 Times interest earned 6.0 times Return on total assets 13% Price-earnings ratio 12 + eBook Required: 1. To assist the Gulfport Bank in making a decision about the loan, compute the following ratios for both this year and last year (Use 365 days a year. Round your intermediate calculations to 1 decimal place. Round Debt-to-equity ratio to 3 decimal places and Print other answers to 2 decimal places.): a. The amount of working capital. References p. The current ratio. c. The acid-test (quick) ratio. d. The average age of receivables (the accounts receivable at the beginning of last year totalled $186,000). e. The inventory turnover in days (the inventory at the beginning of last year totalled $372,000). . The debt-to-equity ratio. g. The times interest earned. This Year Last Year Working capital Current ratio to 1 to 1 Acid-test ratio to 1 to 1 Average age of receivables days days Inventory turnover in days days days Debt-to-equity ratio to 1 to 1 Times interest earned times times 2. For both this year and last year: (a) Present the balance sheet in common-size format. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 1 decimal place.)2. For both this year and last year: (a) Present the balance sheet in common-size format. (Leave no cells blank - be certain to enter "0" wherever required. Round your answers to 1 decimal place.) O 10 points SABIN ELECTRONICS Common-Size Balance Sheets + This Year Last Year Current assets: Book Cash % % Marketable securities Print Accounts receivable, net Inventory Prepaid expenses References Total current assets Plant and equipment, net Total assets % % Current liabilities % % Bonds payable, 12% Total liabilities Shareholders' equity: Preferred shares, no par, $6 Common shares, no par Retained earnings Total shareholders' equity Total liabilities and equity % %Print in (b) Present the income statement in common-size format down through net income. (Input all values as positive values. Round your References answers to 1 decimal place.) SABIN ELECTRONICS Common-Size Balance Sheets This Year Last Year Sales % % Less cost of goods sold Gross margin Less operating expenses Net operating income Less interest expense Net income before taxes Less income taxes Net income % % 3. This part of the question is not part of your Connect assignment