Use the attached financial information of Precision Tool to calculate the following ratios and show your work:

1) How many days on average does it take Precision Tool to sell its inventory? (Use 2012 values)

2) How many dollars of sales are being generated from every dollar of net fixed assets? (Use 2012 values.)

3) What is the equity multiplier for 2012?

4) What is the return on equity for 2012?

Precision Tool 2012 Income Statement Net sales Less: Cost of goods sold Less: Depreciation Earnings before interest and taxes Less: Interest paid Taxable Income Less: Taxes Net income $36,408 28,225 6,423 $5,913 $3,843 Precision Tool 2011 and 2012 Balance Sheets 2011 2011 2012 $8,384 11.500 17,500 2012 $2,060 3.411 8,776 $24,247 14.160 Cash Accounts payable Long-term debt Common stock Retained earning $7,250 9.800 15,000 357 S1,003 4.218 21,908 c S27,129 14.080 S41.209Total Accounts rec Inventory Total Net fixed assets Total assets 825 Total liab & equity 38407S41.209