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TB PR Qu . 1 2 - 1 7 7 ( Algo ) The following income statement... The following income statement and balance sheets for

TB PR Qu.12-177(Algo) The following income statement...
The following income statement and balance sheets for Ringling Company are provided.
RINGLING COMPANY
Income Statement
For the Year Ended December 31,2024
Net sales $8,740,000
Cost of goods sold 5,370,000
Gross profit 3,370,000
Expenses:
Operating expenses $1,520,000
Depreciation expense 194,000
Interest expense 34,000
Income tax expense 344,000
Total expenses 2,092,000
Net income $1,278,000
RINGLING COMPANY
Balance Sheets
December 31
20242023
Assets
Current assets:
Cash $148,000 $198,000
Accounts receivable 710,000730,000
Inventory 1,325,000995,000
Supplies 94,00069,000
Long-term assets:
Equipment 1,070,0001,070,000
Less: Accumulated depreciation (388,000)(194,000)
Total assets $2,959,000 $2,868,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $99,000 $75,000
Interest payable 03,400
Income tax payable 32,00029,400
Long-term liabilities:
Notes payable 440,000440,000
Stockholders' equity:
Common stock 540,000540,000
Retained earnings 1,848,0001,780,200
Total liabilities and stockholders equity $2,959,000 $2,868,000
Required:
Assuming that all sales were on account, calculate the following risk ratios for 2024.(Use 365 days a year. Round your final answers to 1 decimal place.)
Acid Test Ratio
Debt to equity ratio
Times interest earned ratio

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