Your company is considering the possible acquisition of Growth, Inc. The financial statements of Growth, Inc., follow:

Partial notes: Under the LIFO method, inventories have been reduced by approximately $35,300 and $41,100 at December 31, 2009 and 2008, respectively, from current cost, which would be reported under the first-in, first-out method.
The effective tax rates were 36.6%, 30.7%, and 31.4%, respectively, for the years ended December 31, 2009, 2008, and 2007.
Required
a. Compute the following for 2009, without considering the LIFO reserve:
Liquidity
1. Days€™ sales in inventory
2. Merchandise inventory turnover
3. Inventory turnover in days
4. Operating cycle
5. Working capital
6. Current ratio
7. Acid-test ratio
8. Cash ratio
Debt
1. Debt ratio
2. Debt/equity ratio
3. Times interest earned
Profitability
1. Net profit margin
2. Total asset turnover
3. Return on assets
4. Return on total equity
b. Compute the ratios in part (a), considering the LIFO reserve.
c. Comment on the apparent liquidity, debt, and profitability, considering both sets ofratios.

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GROWTH, INC. Balance Sheet December 31, 2009 and 2008 2009 2008 Assets Current assets Cash Accounts receivable, less allowance of S 64,346 99,021 S 11,964 $750 for doubtful accounts Inventories, FIFO Prepaid expenses 83,575 74,890 171,599 Total current assets Investments and other assets Property, plant, and equipment: Land and land improvements Buildings 6,990 63,280 59,259 156,000 221.659 98,000 123,659 $295.433 Machinery and equipment 252,270 110,000 142,270 Less: Accumulated depreciation Net property, plant, and equipment Total assets $370.26 2009 2008 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Federal income taxes Accrued liabilities Current portion of long-term debt S 32,730 5,300 S 26,850 4,800 24,500 Total current liabilities Long-term debt Other long-term iabilities 5.500 73,730 76,750 5,700 61,650 41.900 4,300 Deferred federal income taxes Total liabilities Stockholders' equity Capital stock Retained eamings 44,000 43,500 132,083 Total stockholders' equity 198,084 $370,264 Total liabilities and stockholders' equity $295,433 GROWTH, INC. Statement of Income Years Ended December 31, 2009, 2008, and 2007 2009 2008 $523,249 457,527 2007 S556,549 482,358 $578,530 Revenues Costs and expenses: 495,651 35,433 Cost of products sold Selling, general, and administrative 29,582 Interest and debt expense 535.392 Income before income taxes Provision for income taxes Net income Net income per share 31,152 12,680 S 18,472 41,979 23,018 24,579