Question

Please show excel formulas

The financial statements for Castle Products, Inc. are given below Castile Products, Inc. Curtats: dundiary Total curatat L Total assets lities and Sta r s' Equity Bondiale, Total abilities Stochons uity Common stock, $10 per value Retained earnings Total stockholders equity Total abilities and stockholders equity Castile products, Inc. Income Statement For the Year Ended December 31 Cost of woods sold $3,675, 1,414, see Selling and adeinistrative expenses utoporating Income Interest expens Nut Income before taxes Income taxes (3) Nut Incom Account balances at the beginning of the year were accounts receivable, $230,000: and Inventory, $320,000. Al sales were on account Required: Compute the following financial data and ratios: t Working coats 2. Current retiRound your answer to 1 decimal place.) 3. Acid-teatro Round your answer to 2 decimal places.) 4. Debttoequity to Round your answer to 2 decimal places.) 5. Times interested to 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.)

Answer 1

		Current Year	Calculation
1	Working capital(Current Assets - Current Liabilities)	$4,09,000	$659,000-$250,000
2	Current Ratio(Current Assets/Current liabilities)	2.6	$659,000/$250,000
3	Acid-test Ratio[(Current Assets - Inventories - Prepaid expenses)/Current laibilities]	1.13	($659,000-$370,000-$7,000)/$250,000
4	Debt to equity ratio(Total Liabilities / Total shareholders equity)	0.63	$600,000/$959,000
5	Times Interest earned ratio =Earning before interest & taxes / Interest expenses	48.01	$1,680,500/$35,000
6	Average accounts receivable =(Beginning Accounts Receivable+Clsoing Accounts Receivable)/2		($230,000+$260,000) /2 =$245,000
	Accounts receivable turnover =Net sales / Average accounts receivable		$3,675,000 / $245,000 =15.00
	Average collection period =365 days/Accounts receivable turnover	24.3 days	365 days / 15.00
7	Average Inventory =(Opening Inventory + Closing Inventory)/2		($320,000+$370,000) / 2 =$345,000
	Inventory Turnover ratio =Cost of goods sold / Average Inventory		$1,414,500 / $345,000 =4.10
	Avearage Sales period =365 days / Inventory Turnover ratio	89 days	365 days / 4.10
8	Operating Cycle =Inventory Period + Accounts receivable period	113.3 days	24.30 + 89.0 days