Assets

Current assets:

Cash $ $21,000$

Accounts receivable, net $240,000$

Merchandise inventory $340,000$

Prepaid expenses $8,000$

Total current assets $609,000$

Property and equipment, net $820,000$

Total assets $ $1,429,000$

Liabilities and Stockholders' Equity

Liabilities:

Current liabilities $ $290,000$

Bonds payable, $11\%370,000$

Total liabilities $660,000$

Stockholders$$ equity:

Common stock, $$10$ par value $ $170,000$

Retained earnings $599,000$

Total stockholders$$ equity $769,000$

Total liabilities and stockholders$$ equity $ $1,429,000$

Castile Products, Incorporated

Income Statement

For the Year Ended December $31$

Sales $ $4,230,000$

Cost of goods sold $1,428,000$

Gross margin $2,802,000$

Selling and administrative expenses $580,000$

Net operating income $2,222,000$

Interest expense $40,700$

Net income before taxes $2,181,300$

Income taxes $(30\%)654,390$

Net income $ $1,526,910$

Account balances at the beginning of the year were: accounts receivable, $$230,000$; and inventory, $$340,000.$ All sales were on account.

$2.$ Current ratio. $($Round your answer to $1$ decimal place.$)$

$3.$ Acid$-$test ratio. $($Round your answer to $2$ decimal places.$)$

$4.$ Debt$-$to$-$equity ratio. $($Round your answer to $2$ decimal places.$)$

$5.$ Times interest earned ratio. $($Round your answer to $2$ decimal places.$)$

$6.$ Average collection period. $($Use $365$ days in a year. Round your intermediate calculations and final answer to $1$ decimal place.$)$

$7.$ Average sale period. $($Use $365$ days in a year. Round your intermediate calculations and final answer to $1$ decimal place.$)$

$8.$ Operating cycle. $($Use $365$ days in a year. Round your intermediate calculations and final answer to $1$ decimal place.$)$