The financial statements for Castile Products, Inc., are given below:

Castile Products, Inc.

Balance Sheet

December 31

Assets

Current assets:

Cash $ 22,000

Accounts receivable, net 160,000

Merchandise inventory 360,000

Prepaid expenses 8,000

Total current assets 550,000

Property and equipment, net 890,000

Total assets $ 1,440,000

Liabilities and Stockholders' Equity

Liabilities:

Current liabilities $ 210,000

Bonds payable, 10% 360,000

Total liabilities 570,000

Stockholders equity:

Common stock, $5 par value $ 110,000

Retained earnings 760,000

Total stockholders equity 870,000

Total liabilities and equity $ 1,440,000

Castile Products, Inc.

Income Statement

For the Year Ended December 31

Sales $ 2,170,000

Cost of goods sold 1,102,500

Gross margin 1,067,500

Selling and administrative expenses 560,000

Net operating income 507,500

Interest expense 36,000

Net income before taxes 471,500

Income taxes (30%) 141,450

Net income $ 330,050

Account balances at the beginning of the year were: accounts receivable, $150,000; and inventory, $270,000. All sales were on account.

Required:

Compute the following financial data and ratios:

1.

Working capital.

2. Current ratio. (Round your answer to 2 decimal places.)

3. Acid-test ratio. (Round your answer to 2 decimal places.)

4. Debt-to-equity ratio. (Round your answer to 2 decimal places.)

5. Times interest earned ratio. (Round your answer to 2 decimal places.)

6. Average collection period. (Use 365 days in a year. Round your answer to 1 decimal place.)

7. Average sale period. (Use 365 days in a year. Round your intermediate and final answer to 1 decimal place.)

8.

Operating cycle. (Round your intermediate calculations and answer to 1 decimal place.)