The balance sheet and income statement of Cookie & Coffee Creations Inc. for its first year of operations, the year ended October 31,2024, follows:

Cookie $ Coffee Creations Inc.

Balance Sheet

October 31,2024

Assets

Current Assets

Cash - $34,160

Accounts receivable - 3,445

Inventory - 18,972

Prepaid rent - 6,678. $63,255

______

Property,Plant, and equipment

Equiment - $105,682

Accumulated depreciation-equipment - (10,441). 95,241

_____________________________

Total assets. $158,496

Liabilities and Stockholders' Equity

Current Liabilities

Accounts Payable. $6,137

Income Payable. 19,610

Dividends Payable. 742

Salaries and wages payable - 2,385

Interest payable - 265

Note payable- current portion - 4,240. $33,379

Long-term liabilities

Note payable- long-term portion - 6,360

Total lisbilities - 39,739

Stockholders' Equity

Paid-in capital

Preferred stock,2968 shares issued and outstanding $14,840

Common stock, 27,491 shares issued, 26,696 outstanding - 27,491. 42,331

Retained earnings - $76,956

Total paid-in capital and retained earnings - 119,287

Less: Treasury stock- common(795 shares), at cost (530)

Total stockholders' equity - 118,757

Total liabilities and stockholders' equity - $158,496

Cookie & Coffee Creations, Inc.

Income Statement

Year Ended October 31,2024

Net sales. $490,250

Costs of goods sold 245,125

Gross Profit 245,125

Operating expenses

Salaries and wages expense. $98,050

Depreciation expense. 10,441

other operating expenses 38,001. 146,492

Income from operations. 98,633

Other expenses

Interest expense. 583

Income before income tax. 98,050

Income tax expense. 19,610

Net income. 78,440

Additional information:

Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more equipment. The loan would be repaid over a 4-year period. The terms of the loan provide for equal semiannual installment payments of $2,500 on May 1 and November 1 of each year, plus interest of 5% on the outstanding balance. Dividends on preferred stock were $1,400. Since this is the first year of operations and the beginning balances are zero, use the ending balances as the average balance where appropriate.

(a) Calculate the following ratios(Round time interest earned to 0 decimal places and all answers to 1 decimal place,e.g. 2.2 or 2.2%)

1. Current ratio __________:1

2. Accounts receivable turnover_____ times

3. Inventory turnover______times

4. Debt to assets_______%

5. Times interest earned______times

6. Gross profit rate_______%

7. Profit margin______%

8. Asset turnover_____times

9. Return on assets______%

10. Return on common stockholders' equity

______%