The balance sheet and income statement of Cookie & Coffee Creations Inc. for its first year of operations, the year ended October 31, 2018, follows.

COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2018
Assets
Current Assets
Cash					$32,219
Accounts receivable					3,250
Inventory					17,897
Prepaid Rent					6,300			$59,666
Property, Plant, and Equipment
Equipment					$99,700
Accumulated depreciationequipment					(9,850	)		89,850
Total assets								$149,516
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable					$5,848
Income tax payable					18,500
Dividends payable					700
Salaries and wages payable					2,250
Interest payable					188
Note payablecurrent portion					4,000			$31,486
Long-term Liabilities
Note payablelong-term portion								6,000
Total liabilities								37,486
Stockholders' Equity
Paid-in capital
Preferred stock, 2,800 shares issued and outstanding		$14,000
Common stock, 25,930 shares issued, 25,180 outstanding		25,930			39,930
Retained earnings					72,600
Total paid-in capital and retained earnings					112,530
Less: Treasury stockcommon (750 shares), at cost					(500	)
Total stockholders equity								112,030
Total liabilities and stockholders' equity								$149,516

COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2018
Sales revenue				$462,500
Cost of goods sold				231,250
Gross profit				231,250
Operating expenses
Salaries and wages expense		$92,500
Depreciation expense		9,850
Other operating expenses		35,987		138,337
Income from operations				92,913
Other expenses
Interest expense				413
Income before income tax				92,500
Income tax expense				18,500
Net income				$74,000

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 $1,250. Since this is the first year of operations and the beginning balances are zero, use the ending balance as the average balance where appropriate.

Comment on your findings from the following ratio's calculated. 1. Current ratio 2. Accounts receivable turnover 3. Inventory turnover 4. Debt to assets 5. Times interest earned 6. Gross profit rate 7. Profit margin 8. Asset turnover 9. Return on assets 10. Return on common stockholders' equity