The financial statements for Castile Products, Inc., are given below:

Account balances at the beginning of the year were accounts receivable, $25,000; and inventory, $60,000. All sales were on account.
Required:
Compute the following financial data and ratios:
1. Working capital.
2. Current ratio.
3. Acid-test ratio.
4. Debt-to-equity ratio.
5. Times interest earned ratio.
6. Average collection period.
7. Average sale period.
8. Operating cycle.

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Castile Products, Inc. Balance Sheet December 31 Assets Current assets $ 6,500 35,000 70,000 3,500 115,000 185,000 $300,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 10% $50,000 80,000 130,000 Total liabilities Stockholders' equity: . 30,000 140,000 170,000 $300,000 Total liabilities and equity . . . . . . . . Castile Products, Inc. Income Statement For the Year Ended December 31 $420,000 292,500 127,500 89,500 38,000 8,000 30,000 9,000 Selling and administrative expenses Net income before taxes 21.000