Use the following information to answer items 1-3: SHOW YOUR WORK

At December 31 a company's records show the following information:

Cash $10,000

Accounts Receivable 30,000

Inventory 80,000

Prepaid Insurance 6, 000

Long-term Assets 200,000

Accounts Payable 30,000

Notes Payable due in 10months 25,000

Wages Payable 5,000

Long-term Liabilities 70,000

Stockholders' (Owner's) Equity 196,000

1. Calculate the current ratio

2. Calculate the Debt to Equity ratio

3. Calculate the Return on Assets

Use the following information to answer items 4-5: SHOW YOUR WORK

For its most recent year a company had Sales (all on credit) of $830, 000 and Cost of Goods Sold of $525, 000. At the end of the year its Accounts Receivable were $86,000 and its Inventory was $110,000. Accounts Payable was $5,000 and Net Income was $42,000.

4. Calculate the Accounts Receivable Turn Days

5. Calculate the Inventory Turn days