Current year Last year

Assets

Current Assets

Cash $960,0001,260,000$

Marketable securities $0300,000$

A$/$c receivable $$net $2,700,0001,800,000$

Inventory $3,900,0002,400,000$

Prepaid expenses $240,000180,000$

Total current assets $7,800,0005,940,000$

Plant & equip net $9,300,0008,940,000$

Total assets $17,100,00014,880,000$

Liabilities & Equities

Liabilities

Current liabilities $3,900,0002,760,000$

Note payable $10\%3,600,0003,000,000$

Total Liabilities $7,500,0005,760,000$

Stockholder$$s equity

Commons stock $78$ $ par $7,800,0007,800,000$

Retained earnings $1,800,0001,320,000$

Total stockholder$$s equity $9,600,0009,120,000$

Total Liabilities & Stockholder$$s equity $17,100,00014,880,000$

Current year Last year

Sales $($all on account $)15,750,00012,480,000$

Cost of goods sold $12,600,0009,900,000$

Gross margin $3,150,0002,580,000$

Selling & Admin exp $1,590,0001,560,000$

Net operating income $1,560,0001,020,000$

Interest expense $360,000300,000$

Net income before tax $1,200,000720,000$

Income taxes $(30\%)360,000216,000$

Net income $840,000504,000$

Common dividends $360,000252,000$

Net income retained $480,000252,000$

Beginning retained earnings $1,320,0001,068,000$

Ending retained earnings $1,800,0001,320,000$

Current ratio $............................\mathrm{.}2\mathrm{.}3$

Quick test ratio $........................\mathrm{.}1\mathrm{.}2$

Average collection period $........\mathrm{.}30$ days

Average sale period $..................\mathrm{.}60$ days

Return on assets $.........................\mathrm{.}9\mathrm{.}5\%$

Debt to equity ratio $....................\mathrm{.}0\mathrm{.}65$

Times interest earned ratio $.......\mathrm{.}5\mathrm{.}7$

Price earnings ratio $.....................\mathrm{.}10$

we decide finally to assess the company$$s liquidity and asset management $.$ For both this year and last year $,$ compute :

a$.$ Working capital

b$.$ The current ratio

c$.$ The quick ratio

d$.$ The average collection period $($ The account receivable balance at the beginning of last year totaled $1,560,000$ $$)$

e$.$ The average sales period $.($ The inventory at the beginning of last year totaled $1,920,000$ $ $)$

f$.$ The operating cycle

g$.$ The total asset turnover $($ The total assets at the beginning of last year totaled $12,960,000$ $ $)$

$4.$ Prepare a brief memo that summarizes how ABC company is performing relative to its competitors

i need the full and detailed answer of the above questions with formulas