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

2020 2019

Accounts receivable (net) $270,000 $300,000

Inventory 210,000 240,000

Total assets 1,800,000 1,200,000

Current liabilities 210,000 165,000

Long-term debt 600,000 450,000

Net credit sales 1,995,000 1,050,000

Cost of goods sold 1,350,000 795,000

Interest expense 75,000 37,500

Income tax expense 90,000 43,500

Net income 225,000 127,500

Required:

Compute the following ratios at December 31, 2020:

a. Inventory turnover for 2020.

b. Accounts receivable turnover for 2020.

c. The debt to assets ratio for 2020.

d. Return on assets for 2020.

e. Times interest earned in 2020.