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The balance sheet and income statement of Cookie & Coffee Creations Inc. for its first year of operations, the year ended October 31, 2021, follows.

COOKIE & COFFEE CREATIONS INC. Balance Sheet October 31, 2021
Assets
Current assets
Cash						$86,219
Accounts receivable						3,250
Inventory						17,897
Prepaid expenses						6,300			$113,666
Property, plant, and equipment
Furniture and fixtures			$12,500
Accumulated depreciationfurniture and fixtures			(1,250	)		11,250
Computer equipment			4,200
Accumulated depreciationcomputer equipment			(600	)		3,600
Kitchen equipment			29,000
Accumulated depreciationkitchen equipment			(2,050	)		26,950			41,800
Total assets									$155,466
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable						$5,848
Income tax payable						19,690
Dividends payable						700
Salaries and wages payable						2,250
Interest payable						188
Note payablecurrent portion						4000			$32,676
Long-term liabilities
Note payablelong-term portion									6,000
Total liabilities									38,676
Stockholders' equity
Paid-in capital
Preferred stock, 2,800 shares issued and outstanding			$14,000
Common stock, 25,930 shares issued, 25,180 outstanding			25,930			39,930
Retained earnings						77,360
Total paid-in capital and retained earnings						117,290
Less: Treasury stock (750 common shares)						500
Total stockholders equity									116,790
Total liabilities and stockholders' equity									$155,466

COOKIE & COFFEE CREATIONS INC. Income Statement Year Ended October 31, 2021
Sales revenue				$462,500
Cost of goods sold				231,250
Gross profit				231,250
Operating expenses
Salaries and wages expense		$92,500
Depreciation expense		3,900
Other operating expenses		35,987		132,387
Income from operations				98,863
Other expenses
Interest expense				413
Income before income tax				98,450
Income tax expense				19,690
Net income				$78,760

Additional information: Natalie and Curtis are thinking about borrowing an additional $20,000 to buy more kitchen equipment. The loan would be repaid over a 4-year period. The terms of the loan provide for equal semiannual installment payments of $2,500 on May 1 and November 1 of each year, plus interest of 5% on the outstanding balance.

(a)

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Calculate the following ratios (use ending balances in place of averages, where necessary): (Round current ratio to 2 decimal places, e.g. 1.68:1. Round times interest earned to 0 decimal places, e.g. 125. Round percentages to 1 decimal place, e.g. 12.1% and round other answers to 1 decimal place, e.g. 12.1.)

1.		Current ratio		enter a number for current ratio rounded to 2 decimal places	:1
2.		Accounts receivable turnover		enter a number for accounts receivable turnover in times rounded to 1 decimal place	times
3.		Inventory turnover		enter a number for inventory turnover in times rounded to 1 decimal place	times
4.		Debt to assets		enter debt to assets ratio in percentage rounded to 1 decimal place	%
5.		Times interest earned		enter a number for times interest earned rounded to 0 decimal places	times
6.		Gross profit rate		enter gross profit rate in percentage rounded to 1 decimal place	%
7.		Profit margin		enter profit margin in percentage rounded to 1 decimal place	%
8.		Asset turnover		enter a number for asset turnover in times rounded to 1 decimal place	times
9.		Return on assets		enter return on assets in percentage rounded to 1 decimal place	%
10.		Return on common stockholders' equity		enter return on common stockholders equity in percentage rounded to 1 decimal place	%

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