The most recent data from the annual balance sheets of Free Spirit Industries Inc. are given in the balance sheet and the income statement given below: A B D G EF Income Statement 1 Balance Sheet 2 3 Assets Liabilities & Equity Net Sales 1,500 4 4 Current assets: Current liabilities: 1,040 Operating costs except depreciation and amortization 5 Cash $2,398 Accounts payable $0 Depreciation and amortization 60 6 Accounts receivable 878 0 1,100 Accruals Notes payable Total Operating costs Operating Income (or EBIT) 7 Inventories 2,574 4,387 400 8 Total current assets 5,850 Total current 4,387 Less: Interest 52 liabilities 9 348 Earnings before taxes (EBT) Less: Taxes (40%) 10 Long-term bonds 5,363 139 11 Net fixed assets: Total debt 9,750 Net Income 209 12 13 7,150 Common equity Net plant and equipment 14 2,113 15 1,137 Common stock Retained earnings Total common equity Total liabilities and 16 3,250 17 Total assets 13,000 13,000 equity Using the data you have and the formula you will be using in ratio analysis, solve for the ratios using Excel commands: A B 1 Ratio Formula Excel Solution 2 3 Current ratio Current Assets / Current Liabilities 4 Inventory turnover ratio Sales / Inventories Sales / Net Fixed Assets 5 Fixed assets turnover ratio 6 Total assets turnover ratio Sales / Total Assets 7 Debt ratio Total Debt / Total Assets 8 Times interest ratio EBIT / Interest Expense 9