Using the income statement and balance sheet you developed for Reid's Rides calculate the following ratios: Profit margin, Return on Assets, Average Collection Period, Total Asset Turnover, Current Ratio, Quick Ratio, and Times Interest Earned.

1.) Income Statement

Sales289,545

Cost of Goods(177,775)

Contributions111,170

Fixed Costs

Depreciation2,000

Utilities13,800

Insurance2650

Vehicle Gas1,140

Phone and Internet3,300

Rent24,000

Vehicle License795

Tools1,020

Part-time Help7,800(56,505)

Profit54,665

Interest: 50,000*.065(3,250)

51,415

Tax: 51,415 * .24(12,339.60)

Profit after Interest and Tax39,075.40

2.) Balance Sheet

LiabilitiesAssets

Loan (6.5% Interest)50,000Miscellaneous Parts9,550

Accounts Payable2,500Tools4,800

Service Truck22,000

Racks, Phone, Computer19,000

Total Cash45,000

Accounts Receivable4,500

Total = 52,500Total = 104,850