Cash $ 77,500 Receivables 336,000 Accounts payable Notes payable $129,000 84,000 Inventories 241,500 Other current liabilities 117,000 Total current assets $655,000 Total current liabilities $330,000 Net fixed assets 292,500 Long-term debt 256,500 Common equity 361,000 Total assets $947,500 Total liabilities and equity $947,500 Sales Cost of goods sold Selling, general, and administrative expenses Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Federal and state income taxes (40%) Net income $1,607,500 1,392,500 145,000 $ 70,000 24,500 $ 45,500 18,200 $ 27,300 Ratio Current assets/Current liabilities Days sales outstanding Morton Industry Average 2.0 35.0 days Sales/Inventory Sales/Fixed assets Sales/Total assets Net income/Sales Net income/Total assets Net income/Common equity Total debt/Total assets "Calculation is based on a 365-day year. 6.7 12.1 3.0 1.2% 3.6% 9.0% 60.0%