what are the steps and how to solve for mckay cabinets

EXHIBIT ONE McKay Cabinets Balance Sheet (5000) 20X7 20x2 EXHIBIT TWO Mckay Cabinets Income Statement (5000) Sales (100% credit) Cash $305 $280 20X2 20X7 $1,100 Accounts Receivable 275 290 $1.330 Cost of Goods Sold 600 760 Inventory 600 570 Gross Profit $500 5570 TOTAL Current Assets 1,180 1.140 20 30 1.700 1.940 160 200 Plant and Equipment Accumulated Depreciation Net Plant and Equipment (500) (600) Operating Expenses Depreciation Net Operating Income Interest Expense Income Before Taxes $320 $340 1,200 1.340 64 57 TOTAL ASSETS $2.380 $2,480 256 283 Accounts Payable 150 200 I Taxes 87 96 Bank Line of Credit 115 0 Net Income $169 $187 TOTAL Current Liab. 265 200 Term Loans 500 500 Common Stock 175 305 775 775 Paid-in-Capital Retained Earnings 665 700 Typical ratios for firms in the same industry as McKay Cabinets are as follows: Mekay Cabinets Sx Industry Ratios Current Ratio Quick Ratio Average Collection Period Inventory Turnover Debt Ratio Times Interest Earned Total Assets Turnover Operating Protit Margin Net Profit Margin Return on Assets Return on Equity 90 days 2.2 3394 17 734 2014 123 9 13.4%