Please answer question 3: B, C and D

3. {Financial statements and Ratios} Bike with Us Cooperation, a specialty bicycle parts replacement venture, was started lat year by two former professional bicycle riders who had substantial competitive racing experience, including the Tour de France. The two entrepreneurs borrow $50,000 from member of their families and each put $30,000 in equality capital. Retail space was rented and $60,000 was spent far fixtures and store equipment. Following the abbreviated income statements and balance sheet information for the Bike-With-Us Cooperation after one year of operations balance sheet information for the BBike with us corporation after one year of operation.

BIKE-WITH-USCORPORATIONINCOME STATEMENT

Sales $325,000

Operating costs $285,000

Depreciation 10,000 Interest 5,000

Taxes 6,000

Cash 1,000

Receivables 30,000

Inventories 50,000

Fixed assets, net 50,000

Payables 11,000

Accruals 10,000

Long Term loan 50,000

Stockholders equity 60,000

Questions:

B. Prepare an income statement and a balance sheet for the Bike with Us Corportation using only the information provided above.

C. Calculate the current ratio,,Quick ration, and NWC-to-total-assets ratio.

D. Calculate the net profit margin, sales to total assets ratio, and the return on assets.