The following ratios have been computed for Al-Aqsa company for 2012 Profit Margin = 20% Times interest earned = 9 times Receivables tumover = 3 Times Acid test ratio = 2:1 Current ratio = 3.1 Debt to total assets ratio = 20% For 2011 Cash = 450,000 Marketable Securities = 25,000, A/R (net) = 40,000, Inventory = 50,000 Fixed assets (net) = 160 000 Total assets = 320,000 Account payable = 30000 Short term notes payable = 35000 Bonds payable = 20,000 Common stock = 200 000 Retained earnings = 35,000 Total liabilities and Equity = 320,000 For 2012 Cash = 30,000 Marketable Securities = 10,000AVR (net) = A, Inventory = B , Fixed Assets = 200,000 Total Assets = K A/P =C, Short term notes payable = 400,000 , Bonds payable =D Common stock = 220,000 Retained earnings = 60.000 Total liabilities and equity = L Items of income statement for December 31,2012 Net Sales = 150,000 Cost of goods sold = 75,000 Depreciation expense = E, Interest Expense = 5000, Selling Expenses = 8000 Administrative expenses = 12000, Total operating expenses = F. Income before Taxes = G, Income Tax expense = H, Net income * = Tax expense (H) 7 (3 ) 8000 12,000 O 15,000 10,000