Question

Presented below is information related to Sunland Inc.

SUNLAND INC. BALANCE SHEET DECEMBER 31, 2020
Cash				$44,900		Notes payable (short-term)		$50,000
Receivables		$109,800				Accounts payable		32,000
Less: Allowance		15,100		94,700		Accrued liabilities		5,100
Inventory				171,200		Common stock (par $5)		261,800
Prepaid insurance				8,100		Retained earnings		141,000
Land				20,200
Equipment (net)				150,800
				$489,900				$489,900

SUNLAND INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue					$1,401,600
Cost of goods sold
Inventory, Jan. 1, 2020		$199,600
Purchases		796,000
Cost of goods available for sale		995,600
Inventory, Dec. 31, 2020		(171,200	)
Cost of goods sold					824,400
Gross profit on sales					577,200
Operating expenses					170,500
Net income					$406,700

Compute the following ratios or relationships of Sunland Inc. Assume that the ending account balances are representative unless the information provided indicates differently.

(1) Current ratio times (2) Inventory turnover times (3) Accounts receivable turnover times $ (4) Earnings per share (5) Profit margin on sales (6) Return on assets on December 31, 2020 Indicate for each of the following transactions whether the transaction would improve, weaken, or have no effect on the current ratio of Sun land Inc. at December 31, 2020. Write off an uncollectible account receivable, $2,200. (1) (2) Purchase additional capital stock for cash. Pay $40,000 on notes payable (short-term) (3) Collect $23,000 on accounts receivable. (4) Buy equipment on account. (5) (6) Give an existing creditor a short-term note in settlement of account.

This is all information provided, times for (1), (2), and (3) are a part of the answer required.