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Selected information from the 2014 and 2013 financial statements of Simple Unit Corporation is presented below: As of December 31 2014 2013 Cash Marketable
Selected information from the 2014 and 2013 financial statements of Simple Unit Corporation is presented below: As of December 31 2014 2013 Cash Marketable securities (current) 21,000 35,000 27,000 22,000 Inventory Accounts receivable (net) Prepaid expenses Land and building (net) Accounts payable 60,000 98,000 105,000 142,000 5,000 3,000 247,000 315,000 57,000 75,000 Accrued expenses 10,000 14,000 Notes payable (short-term) 8,000 4,000 Bonds payable (due in three years) 52,000 66,000 As of December 31 2014 2013 Cash sales 750,000 675,000 Credit sales (percent of cash sales) 82% 85% Cost of goods sold (percent of total sales) 60% 58% Net income Interest expense Income tax expense 30,000 38,000 6,000 9,000 6,000 7,000 Please compute the following ratios for Simple Unit Corporation as of December 31, 2014. Round your answers to two decimal places. a. Current ratio b. Accounts receivable turnover c. Inventory turnover d. Asset turnover e. Times interest earned
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