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

Castile Products, Inc.

Balance Sheet

December 31 Assets Current assets: Cash $ 19,000 Accounts receivable, net 240,000 Merchandise inventory 390,000 Prepaid expenses 7,000 Total current assets 656,000 Property and equipment, net 830,000 Total assets $ 1,486,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 280,000 Bonds payable, 12% 360,000 Total liabilities 640,000 Stockholders' equity: Common stock, $5 par value $ 130,000 Retained earnings 716,000 Total stockholders' equity 846,000 Total liabilities and stockholders' equity $ 1,486,000

Castile Products, Inc.

Income Statement

For the Year Ended December 31 Sales $ 3,740,000 Cost of goods sold 1,526,500 Gross margin 2,213,500 Selling and administrative expenses 600,000 Net operating income 1,613,500 Interest expense 43,200 Net income before taxes 1,570,300 Income taxes (30%) 471,090 Net income $ 1,099,210

Account balances at the beginning of the year were: accounts receivable, $200,000; and inventory, $320,000. All sales were on account.

Required:

Compute the following financial data and ratios:

1. Working capital.

2. Current ratio. (Round your answer to 1 decimal place.)

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 intermediate calculations and final answer to 1 decimal place.)

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

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