Use the Income Statement and/or Balance Sheet below to Compute each ratio. Ensure that ALL formulas and workings are clearly shown:

1. Current Ratio (5 marks)

2. Quick Ratio (5 marks)

3. Debt Ratio (5 marks)

4. Average Inventory Turnover Ratio (5 marks) 5. Net Profit on Sales Ratio (5 marks)

Gallagher Corporation Income Statement

For the Period Ended December 31, 2000

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Gallagher Corporation Balance Sheet As at December 31, 2000 Assets Current Assets Cash Accounts Receivable Less: Allowance for Uncollectible accounts Inventory Prepaid Expenses Total Current Assets 200,000 375,000 25,000 350,000 150,000 35,000 735,000 Fixed Assets Land Building Less: Accumulated depreciation of Building Equipment Less: Accumulated depreciation of Equipment Total Fixed Assets Total Assets 330,000 315,000 80,000 235,000 410,000 60,000 350,000 915,000 1,650,000 Liabilities Current Liabilities Accounts payable Notes Payable Taxes Payable Loan Payable Total Current Liabilities 150,000 25,000 75,000 50,000 300,000 Long-Term Liabilities Bank Loan Total Liabilities 200,000 500,000 400,000 Owners' Equity Contributed Capital Common Stock, $10 par, 40,000 shares Preferred Stock,S100 par, 500 shares authorized, none sold Retained Eamings Total Owners' Equity Total Liabilities and Owners' Equity 750,000 1,150,000 1,650,000 Gallagher Corporation Income Statement For the Period Ended December 31, 2000 Sales Revenue Less: Sales Returns and allowances Net Sales 1,750,000 50,000 1,700,000 Cost of Goods Sold Inventory, January 1, 2000 Purchases Goods available for Sale less: Inventory, December, 2000 Cost of Goods Sold 150,000 1,050,000 1.200,000 200,000 1,000,000 Gross Margin 700,000 150,000 100,000 250,000 Operating Expenses Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Financial Expense Income before Income Taxes Estimated Income Taxes 450,000 20,000 430,000 172,000 Net Income 258,000