Swed Help Save & Exe Assets Cash Accounts receivable Inventory Fixed Assets Total BALANCE SHEET BIG VALLEY ENTERPRISES Liabilities and Equity Income Statement $ 10 Current Liabilities $ 160 Cash Sales 80 Long-Term Debt 230 Credit sales 115 Common Stock 75 Operating Expenses 400 Retained Earnings 140 Depreciation $ 605 Total $ 605 Interest Taxes Net Income $ 275 500 560 100 55 30 2 Interest is Big Valley's only fixed cash charge. Big Valley's market value of equity to book value of debt ratio - 1.5. Peer Average Ratios Current Ratio 1.35 Quick Ratio 0.5 Days Sales in Receivables 50 Sales to Working Capital Sales to Fixed Assets Times Interest Earned Debt to Asset Ratio Return on equity 15$ 14 1.8 4 50 which indicates that Big Valley has Big Valley has a times interest earned ratio that is firm in the industry long-term insolvency risk than the typical 4 the same 3.91; less 3.91; more 4.58; more 4.58, less