8:3

(Computing ratio) Use the information from the balance sheet and income statement in the popup window) to calculate the following ration: 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 1. Debt ratio J. Return on equity k. Fixed asset turnover Balance Sheet ASSETS Cash $ 98,000 38,000 Accounts receivable Inventory 40,000 10,000 Prepaid expenses Total current assets Gross plant and equipment $ 186,000 399,000 (67,000) Accumulated depreciation $ 518,000 Total assets LIABILITIES AND OWNERS' EQUITY Accounts payable $ 90,000 62.000 Adabitinn LIABILITIES AND OWNERS' EQUITY Accounts payable $ 90,000 62,000 Accrued liabilities Total current liabilities $ 152,000 Long-term debt 120,000 Common stock 208,000 38,000 Retained earnings $ 518,000 Total liabilities and equity Income Statement Sales $ 217,000 (86,000) Cost of goods sold Gross profit $ 131,000 Income Statement $ Sales* 217,000 (86,000) Cost of goods sold $ 131,000 Gross profit Selling, general, and administrative expenses (30,000) (30,000) Depreciation expenses Operating profits $ 71,000 (5,000) Interest expense Earnings before taxes 66,000 (13,860) Taxes Net income $ 52,140 12% of sales are cash sales