The financial statements for Castile Products, Incorporated, are given below:

Castile Products, Incorporated

Balance Sheet

December 31

Assets

Current assets:

Cash $ 20,000

Accounts receivable, net 220,000

Merchandise inventory 360,000

Prepaid expenses 12,000

Total current assets 612,000

Property and equipment, net 850,000

Total assets $ 1,462,000

Liabilities and Stockholders' Equity

Liabilities:

Current liabilities $ 210,000

Bonds payable, 11% 390,000

Total liabilities 600,000

Stockholders equity:

Common stock, $5 par value $ 120,000

Retained earnings 742,000

Total stockholders equity 862,000

Total liabilities and stockholders equity $ 1,462,000

Castile Products, Incorporated

Income Statement

For the Year Ended December 31

Sales $ 2,940,000

Cost of goods sold 1,291,500

Gross margin 1,648,500

Selling and administrative expenses 650,000

Net operating income 998,500

Interest expense 42,900

Net income before taxes 955,600

Income taxes (30%) 286,680

Net income $ 668,920

Account balances at the beginning of the year were: accounts receivable, $200,000; 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 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. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.)