Using the Charleston Manufacturing Balance Sheet and Income Statement, answer the following questions:

1. What is the current ratio as of 12/31/20? What does the ratio indicate about the company?

2. What is the Inventory turnover as of 12/31/21? What does the ratio mean for the company?

3. What is the company’s debt ratio on 12/31/20 and 12/31/21? Compare the two ratios.

4. What is the net profit margin on 12/31/20? Explain the net profit margin.

5. What is the return on assets on 12/31/21? Explain the return on assets.

6. What is the return on equity on 12/31/21? Explain the return on equity.

7. What is the days’ sales outstanding on 12/31/20? Explain the days’ sales outstanding. 

INCOME STATEMENT Net Sales Cost of Goods Sold EBIT $80,000 $65,000 ? Interest Expense $15,000 EBT $130,000 Taxes ? Net Income $182,000 $27,000 Dividends Additions to Retained Earnings BALANCE SHEET - ASSETS Cash Accounts Receivable Inventories Total Current Assets Fixed Assets Total Assets LIABILITIES AND EQUITY Accounts Payable Notes Payable Accruals Total Current Liabilities Long-term Debt Common Stock Retained Earnings Total Liabilities 2020 and Equities $155,000 $50,000 $80,000 ? $230,000 $37,000 ? $60,000 $20,000 $20,000 $100,000 $53,000 $46,000 $68,000 ?