(Computing ratios)

Use the information from the balance sheet and income statement to calculate the following ratios:

Balance Sheet
ASSETS
Cash	$96,000
Accounts receivable	39,000
Inventory	49,000
Prepaid expenses	14,000
Total current assets	$198,000
Gross plant and equipment	402,000
Accumulated depreciation	(67,000)
Total assets	$533,000
LIABILITIES AND OWNERS' EQUITY
Accounts payable	$92,000
Accrued liabilities	70,000
Total current liabilities	$162,000
Long-term debt	129,000
Common stock	209,000
Retained earnings	33,000
Total liabilities and equity	$533,000

Income Statement
Sales*	$220,000
Cost of goods sold	(85,000)
Gross profit	$135,000
Selling, general, and administrative expenses	(25,000)
Depreciation expenses	(25,000)
Operating profits	$85,000
Interest expense	(10,000)
Earnings before taxes	$75,000
Taxes	(15,750)
Net income	$59,250
* 12% of sales are cash sales.

a. Current ratio (Round to two decimal places.)

b. Acid-test ratio (Round to two decimal places.)

c. Times interest earned (Round to two decimal places.)

d. Inventory turnover (Round to two decimal places.)

e. Total asset turnover (Round to two decimal places.)

f. Operating profit margin (Round to two decimal places.)

g. Days in receivables (Round to two decimal places.)

h. Operating return on assets (Round to two decimal places.)

i. Debt ratio (Round to two decimal places.)

j. Return on equity (Round to two decimal places.)

k. Fixed asset turnover (Round to two decimal places.)