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Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patents Aathough the company has been faily profitable, it is now experiencing a severe cash shortage. For this reason, in is requesting a $540,000 long-term loan from Culport State Bank, 5120,000 of which will be used to bolster the Cash accoumt and $420,000 of which will be used to modemize equipment. The company's financial statements for the two most recent years follow: During the past year, the company introduced several new product lines and raised the selling prices on a number of old product lines in orcter to improve its profit margin. The company also hired a new sales managec, who has expanded sales into several new terntories. Sales terms are 2/10, n/30. All sales are on account. Required: 1. To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and iast year: a. The amount of working capital. b. The current ratio. c. The acid-test ratio d The average collection period. (The accounts receivable at the beginning of last year totaled $290.000 ) e. The average sale period. (The inventory at the beginning of last year totaled $540.000 ) f. The operating cycle. 9 The total asset furnoven.(The total assets at the beginning of last year were $2,540,000.) h. The debt-to-equity ratio. During the past year, the company introduced several new product lines and raised the selling prices on a fumber of old practuct lines in order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several new territories. Sales terms are 210, n 30 . All sales are on account. Required: 1. To assist in approuching the bank about the loan. Paul has asked you to compute the following ratios for both this year and last year a. The amount of working capital. b. The current ratio. c. The aciditest ratio d. The average collection period, (The accounts recelvable at the beginning of last year totaled 5290,000. . e. The average sale penod. (The inventory at the beginning ol last year totaled $540,000 ) f The operating cycle. 9. The fotal asser furnovec. (The fotal assets at the beginning of iast year were $2540.000.) h. The debt to equity ratio. 1. The tenes interest earned ratio. . The equity multenies. (The total stocktolders' equity at the beginning of last year totaled $1343.000 ) 2. For both this year and last year: a. Fresent the balance sheet in common-size format for both this year and last year: b. Present the income statement in common-sire format down through net income for both this year and last year Complete this question by entering your answers in the tabs below. To atsint in approaching the bagk about the loan, faul has asked you to compute the following ration for both this year and last yein 3. The amourit of warking capital. ti. The cairnent ratbe. (ficond rour answers to 2 decimal places.) c. The acld test ratio. (hlound your armweis to 2 decimal places.) A. The average collection period, (The accounts recelvatle at the beginning of last year totaled $290,000.) (Rownd your Complete this question by entering your answers in the tabs below. To assist in approacking the bank about the loan, Paul has asked you to compute the following raties for both this year and tast year a. The amount of working caplial. b. The current ratio, (Hound your ansners to 2 decimal places.) c. The add teut ratio. (Round yoer anwwers to 2 decimal places.) d. The average collection period. (The accounts receivable at the beginning of last year totaled 5290,000 .) (Hoivnd your d. The average collection period. (The accounts receivable at the beginning of tast year 365 days in year.) e. the average sale peribd. (The inventory at the beginning of last year totaled 5540,000.)(Roundyourintemedlate Q. Clcutabont and tinar answere to 2 declimal place. Use 365 days in a year.) f. The operating cycle. (Round your intermedlate calculations and final answers to. 2 decimal place. Use 265 dayy in a year.). 9. The total asset turnover. (The total assets at the beginning of last year were $2,540,000.) (Round your answeti to 2 . decimat places.) h. The debt-to-eqully ratis. (Aosind your answers to 2 decimal places.) 1. The equity muttipier. (The total stockholders' equity at the beginning of latt year totaled $1,343.000.) (Round your answers to z decimal places.] Complete this question by entering vonr answers in the tabs below. Present the batance sheet in commonsice format for both this year and last year. (Round your anavers to 1 digcimal placke) 1. The equity multipler (The total stockholders' equity at the beginning of last year totaled 51343000 ) 2. For both this year and last year: a. Present the balance sheet in common-size format for both this yeat and last year. b. Present the income statement in common-size format down through net income foc both this year and last yeat Complete this question by entering your answers in the tabs below. Present the income statement in common-size format down through net incotne for both this year and last year. (Round your anbvers to 1 decimal place-) Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patents Aathough the company has been faily profitable, it is now experiencing a severe cash shortage. For this reason, in is requesting a $540,000 long-term loan from Culport State Bank, 5120,000 of which will be used to bolster the Cash accoumt and $420,000 of which will be used to modemize equipment. The company's financial statements for the two most recent years follow: During the past year, the company introduced several new product lines and raised the selling prices on a number of old product lines in orcter to improve its profit margin. The company also hired a new sales managec, who has expanded sales into several new terntories. Sales terms are 2/10, n/30. All sales are on account. Required: 1. To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and iast year: a. The amount of working capital. b. The current ratio. c. The acid-test ratio d The average collection period. (The accounts receivable at the beginning of last year totaled $290.000 ) e. The average sale period. (The inventory at the beginning of last year totaled $540.000 ) f. The operating cycle. 9 The total asset furnoven.(The total assets at the beginning of last year were $2,540,000.) h. The debt-to-equity ratio. During the past year, the company introduced several new product lines and raised the selling prices on a fumber of old practuct lines in order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several new territories. Sales terms are 210, n 30 . All sales are on account. Required: 1. To assist in approuching the bank about the loan. Paul has asked you to compute the following ratios for both this year and last year a. The amount of working capital. b. The current ratio. c. The aciditest ratio d. The average collection period, (The accounts recelvable at the beginning of last year totaled 5290,000. . e. The average sale penod. (The inventory at the beginning ol last year totaled $540,000 ) f The operating cycle. 9. The fotal asser furnovec. (The fotal assets at the beginning of iast year were $2540.000.) h. The debt to equity ratio. 1. The tenes interest earned ratio. . The equity multenies. (The total stocktolders' equity at the beginning of last year totaled $1343.000 ) 2. For both this year and last year: a. Fresent the balance sheet in common-size format for both this year and last year: b. Present the income statement in common-sire format down through net income for both this year and last year Complete this question by entering your answers in the tabs below. To atsint in approaching the bagk about the loan, faul has asked you to compute the following ration for both this year and last yein 3. The amourit of warking capital. ti. The cairnent ratbe. (ficond rour answers to 2 decimal places.) c. The acld test ratio. (hlound your armweis to 2 decimal places.) A. The average collection period, (The accounts recelvatle at the beginning of last year totaled $290,000.) (Rownd your Complete this question by entering your answers in the tabs below. To assist in approacking the bank about the loan, Paul has asked you to compute the following raties for both this year and tast year a. The amount of working caplial. b. The current ratio, (Hound your ansners to 2 decimal places.) c. The add teut ratio. (Round yoer anwwers to 2 decimal places.) d. The average collection period. (The accounts receivable at the beginning of last year totaled 5290,000 .) (Hoivnd your d. The average collection period. (The accounts receivable at the beginning of tast year 365 days in year.) e. the average sale peribd. (The inventory at the beginning of last year totaled 5540,000.)(Roundyourintemedlate Q. Clcutabont and tinar answere to 2 declimal place. Use 365 days in a year.) f. The operating cycle. (Round your intermedlate calculations and final answers to. 2 decimal place. Use 265 dayy in a year.). 9. The total asset turnover. (The total assets at the beginning of last year were $2,540,000.) (Round your answeti to 2 . decimat places.) h. The debt-to-eqully ratis. (Aosind your answers to 2 decimal places.) 1. The equity muttipier. (The total stockholders' equity at the beginning of latt year totaled $1,343.000.) (Round your answers to z decimal places.] Complete this question by entering vonr answers in the tabs below. Present the batance sheet in commonsice format for both this year and last year. (Round your anavers to 1 digcimal placke) 1. The equity multipler (The total stockholders' equity at the beginning of last year totaled 51343000 ) 2. For both this year and last year: a. Present the balance sheet in common-size format for both this yeat and last year. b. Present the income statement in common-size format down through net income foc both this year and last yeat Complete this question by entering your answers in the tabs below. Present the income statement in common-size format down through net incotne for both this year and last year. (Round your anbvers to 1 decimal place-)

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