Based on the financial statements, shown on pages 603-604, for McDonald Carpeting Co. (income statement, statement of owner's equity, and balance sheet), prepare the following financial ratios. All sales are credit sales. The balance of Accounts Receivable on January 1, 20--, was $6,800.

1. Working capital

2. Current ratio

3. Quick ratio

4. Return on owner's equity

5. Accounts receivable turnover and the average number of days required to collect receivables

6. Inventory turnover and the average number of days required to sell inventory

McDonald Carpeting Co. Income Statement For Year Ended December 31, 20 - Revenue from sales: $122 800 00 10101 00 Sales Less sales fetufns and allowances $121 700 00 Net sales Cost of goods sold: Mechandise inventolry, Janualy 1, 20- $ 19 300 00 $62| 800 00 Pufchases $2 800 00 194 4 00 Less: Purchases fetufns and allowances 4| 4| 4| 00 $58 056 00 94 4 00 Purchases discounts Net purchases Add freight-in Cost of goods purchased 59 000 00 $ 78 30000 Goods available for sale 16| 0|0| 00 Less merchandise inventoly, December 31, 20-- Cost of goods sold Gross profit 61 6 00 00 $ 60 100 00 Operating expenses Wages expense Adveltising expense Supplies expense Telephone expense Utilities expense $ 18 000 00 980 00 3 20 00 1200 00 80 00 00 |8|00 00 3500 00 2500 00 Insufance expense Depfeciation expense-building Depleciation expense-equipment Miscellaneous expense 010 00 35 500 00 Total opelating expenses Income from opefations $ 24 600 00 Other fevenues: $ 2800 00 Intefest fevenue Other expenses Intefest expense 2 100 00 $ 25| 3 00 00 Net income