Chapter 14 Financial Statement Analysis 4-5, LO14-7 3.6A ment Shown below is selected information from the financial statements of furniture store From the balance sheet: Cash... Accounts receivable ... Inventory Plant assets (net of accumulated depreciation)... Current liabilities ..... Total stockholders' equity Total assets .... From the income statement: Net sales Cost of goods sold.. . Operating expenses..... Interest expense ..... Income tax expense .... Net income .......... 300 1.000.00 $1.500.000 1.080. 315.000 84.000 15.000 $ 40.000 (46.000 From the statement of cash flows: Net cash provided by operating activities (including interest paid of $79,000).... Net cash used in investing activities ..... Financing activities: Amounts borrowed .. Repayment of amounts borrowed ........ Dividends paid ....................... Net cash provided by financing activities ... Net increase in cash during the year .... $50,000 (14,000 (20,000) Instructions a. Explain how the interest expense shown in the income statement could be $8. nt could be $84.000 de b. Compute the following (round to one decimal place): 1. Current ratio 2. Quick ratio 3. Working capital 4. Debt ratio c. Comment on these measurements and evaluate Dickson, Inc.'s short-term d. Compute the following ratios (assume that the year-end amounts ou stockholders' equity also represent the average amounts throughout the 1. Return on assets 2. Return on equity m debt-page s of total assets