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

2013 2012

Accounts receivable (net) $180,000 $200,000

Inventory 140,000 160,000

Total assets 1,200,000 800,000

Current liabilities 140,000 110,000

Long-term debt 400,000 300,000

Net credit sales 1,330,000 700,000

Cost of goods sold 900,000 530,000

Interest expense 50,000 25,000

Income tax expense 60,000 29,000

Net income 150,000 85,000

Instructions:

Answer the following questions relating to the year ended December 31, 2013. Show computations.

1. Inventory turnover for 2013 is __________.

2. Times interest earned in 2013 is ___________.

3. The debt to total assets ratio for 2013 is _________.

4. Receivables turnover for 2013 is __________.

5. Return on assets for 2013 is _________.