Recent financial statements for Madison Company are given below:

Account balances at the beginning of the company€™s fiscal year were: accounts receivable, $140,000; and inventory, $260,000. All sales were on account.
Required:
Compute financial ratios as follows:
1. Gross margin percentage.
2. Current ratio.
3. Acid-test ratio.
4. Average collection period.
5. Average sale period.
6. Debt-to-equity ratio.
7. Times interest earned.
8. Book value pershare.

Madison Company Balance Sheet June 30 Assets Current assets: S 21,000 160,000 300,000 9,000 490,000 810,000 $1.300,000 Cash Accounts receivable, net Merchandise inventory Prepaid expenses. . Total current assets. Property and equipment, net . Total assets. Liabilities and Stockholders' Equity Liabilities Current liabilities... Bonds payable, 1096 $ 200,000 300,000 Total liabilities. Stockholders' equity: 500,000 Common stock, S5 par value Retained earnings.. $100,000 700,000 Total stockholders' equity Total liabilities and stockholders' equity 800,000 $1,300,000 Madison Company income Statement For the Year Ended June 30 Sales. Cost of goods sold Gross margin... Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes Net income.. S2,100,000 1,260,000 840,000 660,000 180,000 30,000 150,000 45,000 105,000