The financial statements for Castile Products, Inc., are given below: ...

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Accounting

The financial statements for Castile Products, Inc., are given below:

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash $ 21,000
Accounts receivable, net 170,000
Merchandise inventory 390,000
Prepaid expenses 8,000
Total current assets 589,000
Property and equipment, net 900,000
Total assets $ 1,489,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities $ 210,000
Bonds payable, 8% 350,000
Total liabilities 560,000
Stockholders equity:
Common stock, $5 par value $ 190,000
Retained earnings 739,000
Total stockholders equity 929,000
Total liabilities and equity $ 1,489,000

Castile Products, Inc. Income Statement For the Year Ended December 31
Sales $ 2,380,000
Cost of goods sold 1,172,500
Gross margin 1,207,500
Selling and administrative expenses 610,000
Net operating income 597,500
Interest expense 28,000
Net income before taxes 569,500
Income taxes (30%) 170,850
Net income $ 398,650

Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $280,000. All sales were on account.

Required:
Compute the following financial data and ratios:

1.

Working capital.

2. Current ratio. (Round your answer to 2 decimal places.)

3. Acid-test ratio. (Round your answer to 2 decimal places.)

4. Debt-to-equity ratio. (Round your answer to 2 decimal places.)

5. Times interest earned ratio. (Round your answer to 2 decimal places.)

6. Average collection period. (Use 365 days in a year. Round your answer to 1 decimal place.)

7. Average sale period. (Use 365 days in a year. Round your intermediate and final answer to 1 decimal place.)

8.

Operating cycle. (Round your intermediate calculations and final answers to 1 decimal place.)

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