Question: begin{tabular}{|l|ccc|} hline & multicolumn{3}{c|}{ Income Statement } & 2012 & 2013 & 2014 Sales & 675,000 & 650,000 & 600,000 COGS &

\begin{tabular}{|l|ccc|} \hline & \multicolumn{3}{c|}{ Income Statement } \\ & 2012 & 2013 & 2014 \\ Sales & 675,000 & 650,000 & 600,000 \\ COGS & 330,000 & 370,000 & 375,000 \\ Gross profit & 345,000 & 280,000 & 225,000 \\ Operating expenses & 165,000 & 175,000 & 180,000 \\ Depreciation & 20,000 & 15,000 & 10,000 \\ Operating income & 160,000 & 90,000 & 35,000 \\ Interest exp. & 10,000 & 7,500 & 5,000 \\ EBT & 150,000 & 82,500 & 30,000 \\ Taxes & 60,000 & 33,000 & 12,000 \\ Net Income & 90,000 & 49,500 & 18,000 \\ \hline \end{tabular} \begin{tabular}{|l|ccc|} \hline & \multicolumn{3}{c|}{ Balance Sheet } \\ & 2012 & 2013 & 2014 \\ Cash & 650,000 & 350,000 & 200,000 \\ Accounts receivable & 275,000 & 300,000 & 515,000 \\ Inventories & 100,000 & 100,000 & 200,000 \\ Current Assets & 1,025,000 & 1,005,000 & 915,000 \\ Net fixed assets & 1,000,000 & 1,100,000 & 900,000 \\ Total Assets & 2,025,000 & 1,850,000 & 1,815,000 \\ Notes payable & 75,000 & 150,000 & 200,000 \\ Accounts payable & 150,000 & 90,000 & 115,000 \\ Accruals & 90,000 & 100,000 & 25,000 \\ Current Liabilities & 315,000 & 340,000 & 340,000 \\ Long-term debt & 875,000 & 1,000,000 & 1,200,000 \\ Total Liabilities & 1,190,000 & 1,340,000 & 1,540,000 \\ Common stock @ (\$0.25 par) & 30,000 & 25,000 & 25,000 \\ Additional paid in capital & 505,000 & 200,000 & 200,000 \\ Retained earnings & 300,000 & 285,000 & 50,000 \\ Total Liabilities \& Equity & 2,025,000 & 1,850,000 & 1,815,000 \\ \hline \end{tabular} 3. What is the firm's days receivable/average collection period in 2012 ? 4. What is the firm's days payable/average payables period in 2012? 5. What is the firm's cash conversion cycle in 2012? 6. What is the firm's debt to assets ratio in 2014? 7. What is the firm's current ratio in 2012
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