Calculate the ratios below given the financial data presented to your left.

M21 0 Financial data for Cartwright Timbers Calculate the ratios below given the financial data presented to your left. The Balance Sheet Total Current Asset Cash Accounts receivable Inventory Answers $1,000 Meas ures of Short-term Liquidity 3,000 5,000 $9,000 quick assets/current liabilities current assets/current liabilities net sales /accounts receivable 365 days/receivables turnover rate cost of goods sold/inventory current ratio quick ratio receivables turnover rate days to collect receivables inventory turnover rate Fixed Asset Property, plant and equipment 11,000 Total Assets Measures of Long-term Credit Risk total liabilities/total assets operating income/annual interest expense debt ratio Times Interest Earned Current Liability Accounts payable Wages payable $4,000 1,000 $5,000 Measures of Profitability net income sales net income /total assets net income/total equity Profi Margin return on assets return on equity 20 Long-term Liability Bonds payable 6,000 6,000 3 Equity 24 25 Common Stock $5,000 Retained Earnings 4,000 9,000 7 Total Liabilities Equity $20,000 28 29 The Income Statement 30 Amount $50,000 40,000 10,000 6,000 4,000 Net sales Cost of goods sold 34 35 36 gross profit Operating expenses operating income Interest expense Tax expense net income 38 39 $2,000