Use the following information to calculate financial ratios for the company. (show all answers to 1 decimal place AND state in proper form i.e. %, #days, #times and for current/quick ratio X:1): 2021 Cash 82,370 Accounts Receivable 6,555 Total Inventory 327,750 Prepaid Expenses 4,288 Total Current Assets 420,963 Property and Equipment 290,750 Total Assets 711,713 Total Current Liabilities 111,450 Total Debt 45,000 Total Liabilities 156,450 Total Shareholders' Equity 555,263 Sales/Total Revenue / Net 2,250,000 Credit Sales COGS (Cost of Goods Sold) 1,370,500 Gross Profit 879,500 Net Income / Profit 207,850 1. Calculate the Current Ratio for 2021 2020 71,740 5,963 364,680 5,382 447,765 250,612 698,377 128,857 50,512 179,369 519,008 2,064,676 1,299,092 765,584 250,094 2. Calculate the Quick Ratio for 2021 250,094 Net Income / Profit 207,8501 1. Calculate the Current Ratio for 2021 2. Calculate the Quick Ratio for 2021 3. Calculate the Inventory Turnover for 2021 4. Calculate the Days Sales in Inventory for 2021 5. Calculate the Gross Margin for 2021 SUMMARY OF KEY FORMULAE Item Formula Working capital Current assets - Current liabilities Current Ratio Current assets / Current liabilities Quick Ratio (Acid-test) Cash short-term investments + AR/Current liabilities Receivables turnover Sales y average gross accounts receivable Collection Period Days in year/Receivables turnover Inventory turnover Cost of goods sold Average inventory Days sales in inventory Days in year / Inventory turnover Operating cycle Days sales in inventory + collection period Debt to Total Assets Total liabilities / Total assets - Collection Period Days in year / Receivables turnover Inventory turnover Cost of goods sold / Average inventory Days sales in inventory Days in year / Inventory turnover Operating cycle Days sales in inventory + collection period Debt to Total Assets Total liabilities / Total assets Debt to Equity Total liabilities / Owner's (Shareholders') Equity Interest Coverage Profit + Interest expense + Income Tax Expense (EBIT) / Interest Expense Free Cash Flow Net cash provided (used) by operating activities - cash used for investing activities Gross Margin (%) Gross Profit/ Total revenue (Gross Profit Margin) Profit Margin Net profit / Total revenue (%) (Net Margin) Asset turnover Net sales / Average total assets Return on Assets Net profit / average total assets 7 Return on Profit / Average shareholders' equity Equity (ROE) Earnings per Profit - Preferred dividends / Weighted share (EPS) average number of common shares Price Earnings Market price per share / Earnings per share Ratio (P/E) Payout ratio Cash dividends / Profit