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The financial statements for Castile Products, Incorporated, are given below:

Castile Products, Incorporated Balance Sheet December 31
Assets
Current assets:
Cash	$ 24,000
Accounts receivable, net	240,000
Merchandise inventory	340,000
Prepaid expenses	10,000
Total current assets	614,000
Property and equipment, net	820,000
Total assets	$ 1,434,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities	$ 290,000
Bonds payable, 8%	360,000
Total liabilities	650,000
Stockholders equity:
Common stock, $10 par value	$ 120,000
Retained earnings	664,000
Total stockholders equity	784,000
Total liabilities and stockholders equity	$ 1,434,000

Castile Products, Incorporated Income Statement For the Year Ended December 31
Sales	$ 3,375,000
Cost of goods sold	1,386,000
Gross margin	1,989,000
Selling and administrative expenses	660,000
Net operating income	1,329,000
Interest expense	28,800
Net income before taxes	1,300,200
Income taxes (30%)	390,060
Net income	$ 910,140

Account balances at the beginning of the year were: accounts receivable, $210,000; and inventory, $320,000. All sales were on account.

Required:

Compute the following financial data and ratios:

1. Working capital.

2. Current ratio. (Round your answer to 1 decimal place.)

3. Acid-test ratio. (Round your answer to 2 decimal places.)

4. Debt-to-equity ratio. (Round your answer to 2 decimal places.)

5. Times interest earned ratio. (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. (Use 365 days in a year. Round your intermediate calculations and final answer to 1 decimal place.)

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