The following ratios have been computed for Al-Aqsa company for 2012 Profit Margin = 20% Times interest earned = 9 times Receivables turnover = 3 Times Acid test ratio = 21 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 = 30,000 Short term notes payable = 35,000 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 = 10,000 A/R (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 1 = Operating expenses (F) 8 (3 ) 30,000 40,000 35,000 32,000