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(Evaluating profitability) Last year, Stevens Inc. had sales of $396,000, with a cost of goods sold of $117,000. The firm's operating expenses were $134,000, and its increase in retained earnings was $50,000. There are currently 22,700 common stock shares outstanding and the firm pays a $1.63 dividend per share. a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement b. Compute the firm's operating profit margin c. What was the times interest eamed? S a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. (Round to the nearest dollar. Note You may Input expense accounts as negative values.) Stevens Inc. Income Statement Sales 396,000 Cost of goods sold 117,000 Gross profits 279,000 Operating expenses 134,000 Operating profits 145,000 Interest expense Earnings before taxes Income taxes $ $ Net income a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. b. Compute the firm's operating profit margin. c. What was the times interest earned? (Ratio analysis) The balance sheet and income statement for the A. Thiel Mfg. Company are given in the popup window Calculate the following ratios a. Current ratio b. Operating return on assets c. Times interest earned d. Debt ratio e. Inventory turnover 1. Average collection period g. Total asset turnover h. Fixed asset turnover 1. Operating profit margin J. Return on equity a. The current ratio is x (Round to two decimal places.) -X Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Balance Sheet ($000) Cash Accounts receivable Inventories Current assets Net fixed assets Total assets $ 522 1,997 1,018 $ 3,537 4,523 $ 8,060 Accounts payable Accrued expenses Short-term notes payable Current liabilities Long-term debt Owners' equity Total liabilities and owners' equity $ 1,123 623 322 $ 2,068 1,987 4,005 $ 8,060 (Click on the following icon in order to copy its contents into a spreadsheet.) Income Statement ($000) Sales (all credit) Cost of goods sold Gross profit Operating expenses (includes $493 depreciation) Operating profits Interest expense Earnings before taxes Income taxes (21%) Net income $ 7,985 (3,322) $ 4,663 (2,995) $ 1,668 (356) $ 1,312 (276) $ 1,036 a. Current ratio b. Operating return on assets c. Times interest earned d. Debt ratio e. Inventory turnover f. Average collection period g. Total asset turnover h. Fixed asset turnover i. Operating profit margin j. Return on equity (Evaluating liquidity The Tabor Sales Company had a gross profit margin (gross profits + sales) of 30.7 percent and sales of $9.5 million last year. Seventy-five percent of the firm's sales are on credit and the remainder are cash sales. Tabor's current assets equal $2.7 milion, its current liabilities equal $306,000, and it has $100,000 in cash plus marketable securities a. If Tabor's accounts receivable are $562,500, what is its average collection period? b. If Tabor reduces its average collection period to 18 days, what will be its new level of accounts receivable? c. Tabor's inventory tumover ratio is 9.6. times. What is the level of Tabor's inventories? a. If Tabor's accounts receivable are $562,500, its average collection period is days. (Round to two decimal places.) a. If Tabor's accounts receivable are $562,500, what is its average collection period? b. If Tabor reduces its average collection period to 18 days, what will be its new level of accounts receivable? c. Tabor's inventory turnover ratio is 9.6 times. What is the level of Tabor's inventories? COD