EXERCISE $16-8$ Selected Financial Ratios L$016-2,$ LO$16-3,$ LO$16-4$

The financial statements for Castile Products, Inc., are given below:

Account balances at the beginning of the year were accounts receivable, $$25,000,$ and inventory,

$$60,000.$ All sales were on account.

Required:

Compute the following financial data and ratios:

Working capital.

Current ratio.

Acid$-$test ratio.

Debt$-$to$-$equity ratio.

Times interest earned ratio.

Average collection period.

Average sale period.

Operating cycle.