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Use the following to answer the next two questions: Income Statement Sales 100% Cost of goods sold 63 Operating expenses 21 Interest expense 5 Income

Use the following to answer the next two questions:

Income Statement

Sales

100%

Cost of goods sold

63

Operating expenses

21

Interest expense

5

Income tax

4

Net income

7%

Sales

$8,000,000

Balance Sheet

Cash

5%

Accounts receivable

20

Inventory

25

PP&E, net

50

Total assets

100%

Short-term debt

20%

Long-term debt

35

Common equity

45

Total liabilities and equity

100%

Total assets

$6,000,000

current ratio is closest to:

Group of answer choices

2.50.

1.90.

1.20.

NRH Corps times interest earned ratio is closest to:

Group of answer choices

3.2.

1.6.

7.0.

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