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The financial statements for Castile Products, Inc., are given below: Castile Products, Inc. Balance Sheet December 31 Assets Current assets: Cash $ 23,000 Accounts receivable,

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

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash $ 23,000
Accounts receivable, net 250,000
Merchandise inventory 320,000
Prepaid expenses 9,000
Total current assets 602,000
Property and equipment, net 910,000
Total assets $ 1,512,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities $ 210,000
Bonds payable, 8% 310,000
Total liabilities 520,000
Stockholders equity:
Common stock, $5 par value $ 160,000
Retained earnings 832,000
Total stockholders equity 992,000
Total liabilities and equity $ 1,512,000

Castile Products, Inc. Income Statement For the Year Ended December 31
Sales $ 3,010,000
Cost of goods sold 1,320,000
Gross margin 1,690,000
Selling and administrative expenses 560,000
Net operating income 1,130,000
Interest expense 24,800
Net income before taxes 1,105,200
Income taxes (30%) 331,560
Net income $ 773,640

Account balances at the beginning of the year were: accounts receivable, $180,000; and inventory, $340,000. All sales were on account.

Compute the following financial data and ratios:

1. Working capital.

Working capital

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

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

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

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

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

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

8.

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

Operating cycle days

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