1 Curren Ratio = Current Asset ÷ Current Liabilities

= 3500 ÷ 2000
= 1.75

2 Time Interest Earned = Net Operating Income ÷ Interest Expense

= 1700 ÷ 367
= 4.6321525886

3 Inventory Turnover = Cost Of Goods Sold ÷ Inventories

= 3300 ÷ 1000
= 3.3

4 Total Asset Turnover = Sales ÷ Total Assets

= 8000 ÷ 8000
=1

5 Operating Profit Margin = Net Operating Income ÷ Sales

= 1700 ÷ 8000
= 0.2125

6 Debt Ratio = Total Debt ÷ Total Assets

= (2000+2000)÷8000
= 0.5

7 Average Collection Period = Account Receivable ÷ (Annual Credit Sales ÷ 365 days)
= 2000÷(8000÷365)
= 91.25

8 Fixed Asset Turnover = Sales ÷ Net Plant and Equipment

= 8000÷4500
= 1.7777777778

9 Return on Equity = Net Income ÷ Common Equity

= 800÷4000
= 0.2
NO EQUATION CARSON'S
(𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡)/(𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠) = 8000/7000
1 Current Ratio =
1.1428571429
(𝑁𝑒𝑡 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐼𝑛𝑐𝑜𝑚𝑒)/(𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒) = 4000/1150
2 Times Interest Earned =
3.4782608696
(𝐶𝑜𝑠𝑡 𝑂𝑓 𝐺𝑜𝑜𝑑𝑠 𝑆𝑜𝑙𝑑)/𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠 = 36000/1500
3 Inventory Turnover =
24
𝑆𝑎𝑙𝑒𝑠/(𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠) = 48000/24000
4 Total Assets Turnover =
2
(𝑇𝑜𝑡𝑎𝑙 𝐷𝑒𝑏𝑡)/(𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠) = (7000+8000)/24000
5 Debt Ratio =
63%
(𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒)/(𝐴𝑛𝑛𝑢𝑎𝑙 𝐶𝑟𝑒𝑑𝑖𝑡 𝑆𝑎𝑙𝑒𝑠/365𝑑𝑎𝑦𝑠)
= 4500/(48000/365)
6 Average Collection Period =
34.21875
𝑆𝑎𝑙𝑒𝑠/(𝑁𝑒𝑡 𝑃𝑙𝑎𝑛𝑡 𝑎𝑛𝑑 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡) = 48000/16000
7 Fixed Asset Turnover =
3
(𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒)/𝐶𝑜𝑚𝑚𝑜𝑛 = 1710/9000
8 Return on Equity =
19%
 BGT'S
= 10000/8000
1.25
= 16000/550
29.0909090909
= 42000/2500
16.8
= 70000/35000
2
= (8000+4000)/35000
34%
= 6000/(70000/365)
31.2857142857
= 70000/25000
2.8
= 9270/23000
40%