Financial information is given below

				2020		2021		2022
Sales				11 311 223		27 146 935		47 744 483
Cost of sales				6 334 285		10 858 774		19 545 793
GROSS PROFIT				4 976 938		16 288 161		28 198 689
Operating Expenses				508 816		2 509 158		4 236 485
OPERATING PROFIT				4 468 122		13 779 003		23 962 204
Other Income				175 605		73 311		118 329
Other Expenses				22 904		76 749		91 300
EARNINGS BEFORE INTEREST AND TAXES				4 620 823		13 775 565		23 989 234
Interest Expense				1 361 221		1 642 931		1 775 815
EARNINGS BEFORE TAXES				3 259 602		12 132 634		22 213 419
Provision for Income Taxes				1 046 468		2 504 522		4 585 485
NET INCOME				2 213 133		9 628 111		17 627 934
Statement of Financial Position ended 31 January.
ASSETS				2020		2021		2022
Cash & Equivalents				165 976		59 704		72 481
Trade Accounts Receivable				76 301		131 668		108 665
Inventory				564 723		562 527		714 609
Other Current Assets				11 498		32 736		80 226
TOTAL CURRENT ASSETS				818 497		786 635		975 980
Long-Term Investments				296 039		1 054 808		1 032 783
Net Fixed Assets				1 733 864		2 300 459		2 913 069
Intangible Assets				35 188		41 765		40 383
Other Non-Current Assets				44 447		52 913		255 150
TOTAL ASSETS				2 928 034		4 236 580		5 217 365
LIABILITIES				2020		2021		2022
Accounts Payable				32 347		38 508		18 506
Notes Payable				66 715		79 422		47 506
Accrued Liabilities				69 241		479 255		300 441
Income Taxes Payable				7 570		9 012		5 165
Current Portion of Long-Term Debt				84 096		100 114		65 550
TOTAL CURRENT LIABILITIES				259 968		706 312		437 168
Long-Term Debt				319 783		380 443		223 849
Other Long-Term Liabilities				62 654		74 250		30 600
TOTAL LONG-TERM LIABILITIES				382 437		454 693		254 449
TOTAL LIABILITIES				642 405		1 161 004		691 617
Ordinary Share capital				2 600 529		2 600 529		2 600 529
Preference share capital.				712 000		712 000		712 000
Retained Earnings				2 213 133		9 628 111		17 627 934
TOTAL EQUITY				5 525 662		12 940 640		20 940 463
TOTAL LIABILITIES AND EQUITY				6 168 068		14 101 645		21 632 080

Required:

1. Compute the average age inventory of Eagle Toys for2021 (Show calculations)

2. Compute the current ratio of Eagle Toys for 2020? (Show calculations)

3. Compute the operating profit margin of Eagle Toys for 2020? (Show calculations)

4. Compute the times interest earned ratio of Eagle Toys for 2022? (Show calculations)

Answer rating: 100% (QA)

1 To compute the average age of inventory for 2021 we need to divide the cost of goods sold COGS by ... View the full answer