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 : 2.1 Current ratio = 31 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 * = Accounts payable (C).11 (3 ) 15,000 20,000 12,000 10,000 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 : 2.1 Current ratio = 31 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 * = Accounts payable (C).11 (3 ) 15,000 20,000 12,000 10,000