Question

The following income statement and balance sheets for Laser World are provided: LASER WORLD Income Statement For the year-ended December 31, 2021

LASER WORLD
Income Statement
For the year-ended December 31, 2021
Sales revenue	$	2,280,000
Cost of goods sold		1,560,000
Gross profit		720,000
Expenses:
Operating expenses		347,000
Depreciation expense		68,000
Loss on sale of land		4,900
Interest expense		21,000
Income tax expense		55,000
Total expenses		495,900
Net income	$	224,100

LASER WORLD
Balance Sheet
December 31
		2021				2020
Assets
Current assets:
Cash	$	127,000			$	102,000
Accounts receivable		96,000				74,000
Inventory		150,000				130,000
Prepaid rent		19,000				19,000
Long-term assets:
Land		320,000				260,000
Equipment		260,000				210,000
Accumulated depreciation		(75,000	)			(43,000	)
Total assets	$	897,000			$	752,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	53,000			$	53,000
Interest payable		8,500				7,500
Income tax payable		15,500				12,900
Long-term liabilities:
Notes payable		310,000				210,000
Stockholders' equity:
Common stock		170,000				170,000
Retained earnings		340,000				298,600
Total liabilities and equity	$	897,000			$	752,000

Assuming that all sales were on account, calculate the following risk ratios for 2021: (Assume 365 days in a year. Round your intermediate calculations and final answers to 1 decimal place.)

	Risk Ratios 1. Receivables turnover ratio times 2. Average collection period days 3. Inventory turnover ratio times 4. Average days in inventory days 5. Current ratio to 1 6. Acid-test ratio to 1 7. Debt to equity ratio % 8. Times interest earned ratio times

Answer 1