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

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash	$	20,000
Accounts receivable, net		240,000
Merchandise inventory		400,000
Prepaid expenses		8,000
Total current assets		668,000
Property and equipment, net		840,000
Total assets	$	1,508,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities	$	300,000
Bonds payable, 12%		310,000
Total liabilities		610,000
Stockholders equity:
Common stock, $10 par value	$	180,000
Retained earnings		718,000
Total stockholders equity		898,000
Total liabilities and stockholders equity	$	1,508,000

Castile Products, Inc. Income Statement For the Year Ended December 31
Sales	$	3,895,000
Cost of goods sold		1,500,000
Gross margin		2,395,000
Selling and administrative expenses		580,000
Net operating income		1,815,000
Interest expense		37,200
Net income before taxes		1,777,800
Income taxes (30%)		533,340
Net income	$	1,244,460

Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $350,000. All sales were on account.

Required:

Compute the following financial data and ratios:

1. Working capital.

2. Current ratio. (Round your answer to 1 decimal place.)

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 intermediate calculations and final answer to 1 decimal place.)

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

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

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

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash	$	20,000
Accounts receivable, net		240,000
Merchandise inventory		400,000
Prepaid expenses		8,000
Total current assets		668,000
Property and equipment, net		840,000
Total assets	$	1,508,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities	$	300,000
Bonds payable, 12%		310,000
Total liabilities		610,000
Stockholders equity:
Common stock, $10 par value	$	180,000
Retained earnings		718,000
Total stockholders equity		898,000
Total liabilities and stockholders equity	$	1,508,000

Castile Products, Inc. Income Statement For the Year Ended December 31
Sales	$	3,895,000
Cost of goods sold		1,500,000
Gross margin		2,395,000
Selling and administrative expenses		580,000
Net operating income		1,815,000
Interest expense		37,200
Net income before taxes		1,777,800
Income taxes (30%)		533,340
Net income	$	1,244,460

Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $350,000. All sales were on account.

Required:

Compute the following financial data and ratios:

1. Working capital.

2. Current ratio. (Round your answer to 1 decimal place.)

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 intermediate calculations and final answer to 1 decimal place.)

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

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

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