F G H K L M N Financial data for Cartwright Timbers The Balance Sheet 1 2 3 4 5 6 7 Total Account Current Asset Cash $2,000 00 Accounts receivable 3,000 Calculate the ratios below given the financial data presented to your left. Answers Measures of Short-term Liquidity current assets/ current liabilities current ratio quick assets/ current liabilities quick ratio net salest accounts receivable receivables turnover rate 365 days/ receivables turnover rate days to collectireceivables cost of goods sold/ inventory inventory turnover rate 11,000 $16,000 9 Inventory 10 11 Fixed Asset 24,000 12 Property, plant and equipment 13 ##### 14 Total Assets = 15 Measures of Long-term Credit Risk total liabilities total assets operating incomel annual interest expense debt ratio Times Interest Earned 16 Current Liability 17 Accounts payable 18 Wages payable $4,000 2,500 $6,500 19 Measures of Profitability net income sales net income total assets net incomed total equity Profi Margin return on assets return on equity $10,000 10,000 $18,000 5,500 23,500 Fit to screen ##### 20 Long-term Liability 21 Bonds payable 22 23 Equity 24 Common Stock 25 Retained Earnings 26 27 Total Liabilities + Equity 28 29 The Income Statement 30 31 Account 32 Net sales 33 Cost of goods sold 34 gross profit 35 Operating expenses 36 operating income 37 Interest expense 38 Tax expense 39 net income Amount $62,000 40,000 22,000 14,000 8,000 800 1,800 $5,400