BA 321 Spring 2018 January 25, 2018 Ratio Calculation Exercise Balance Sheet Cash Accounts Receivable Inventories Net Plant and Equipment 50,000 125,000 225,000 Accounts Payable Notes Payable Long-term debt $185,000 125,000 115,000 Common Stock Retained earnings Total liabilities and Stockholders' Equity 525,000 350,000 150,000 Total Assets $925,000 $925,000 Income Statement Sales Cost of goods sold Depreciation $525,000 215,000 Earnings before interest and taxes 245,000 35,000 Interest expense Net profit before taxes 210,000 Taxes (@ 40%) S126,000 Net income