7. (Computing ratios) Use the information from the balance sheet and income statement in the popup window, 1, to calculate the following ratios: a. Current ratio b. Acid-test ratio c. Times interest earned d. Inventory turnover e. Total asset turnover f. Operating profit margin g. Days in receivables h. Operating return on assets i. Debt ratio j. Return on equity k. Fixed asset turnover a. The current ratio is X. (Round to two decimal places.) b. The acid-test ratio is X. (Round to two decimal places.) c. The times interest earned is X. (Round to two decimal places.) d. The inventory turnover is X. (Round to two decimal places.) e. The total asset turnover X. (Round to two decimal places.) f. The operating profit margin is %. (Round to one decimal place.) g. The days in receivables are days. (Round to two decimal places.) h. The operating return on assets is %. (Round to one decimal place.) i. The debt ratio is %. (Round to one decimal place.) j. The return on equity is %. (Round to one decimal place.) k. The fixed asset turnover is X. (Round to two decimal places.) Balance Sheet ASSETS Cash $ 96,000 Accounts receivable 36,000 Inventory 43,000 19,000 Prepaid expenses Total current assets Gross plant and equipment $ 194,000 405,000 (61,000) Accumulated depreciation $ 538,000 Total assets LIABILITIES AND OWNERS' EQUITY Accounts payable $ 92,000 Accrued liabilities 67,000 Total current liabilities $ Long-term debt 159,000 122,000 201,000 56,000 Common stock Retained earnings Total liabilities and equity $ 538,000 Income Statement Sales* $ 212,000 (81,000) $ 131,000 Cost of goods sold Gross profit Selling, general, and administrative expenses Depreciation expenses Operating profits (32,000) (21,000) $ 78,000 (10,000) Interest expense Earnings before taxes $ 68,000 (14,280) Taxes $ 53,720 Net income * 12% of sales are cash sales