Prepare ratios as requested for Global Technology

See the attached file and prepare ratios as requested for Global Technology.

RATIOA
Ratio Analysis

Data Section

Global Technology
Comparative Income Statement
For Years Ended December 31, 2008 and 2007
2008 2007
Net sales $3,516,075 $3,300,330
Cost of merchandise sold 2,820,000 2,550,000
Gross profit $696,075 $750,330
Selling expenses $123,000 $127,500
General expenses 81,660 88,500
Total operating expenses $204,660 $216,000
Operating income $491,415 $534,330
Other expenses (interest) 36,000 19,500
Income before income tax $455,415 $514,830
Income tax 164,400 220,905
Net income $291,015 $293,925

Global Technology
Comparative Retained Earnings Statement
For Years Ended December 31, 2008 and 2007
2008 2007
Retained earnings, January 1 $1,420,095 $1,186,170
Net income for year 291,015 293,925
Total $1,711,110 $1,480,095
Common stock dividends 82,500 60,000
Retained earnings, December 31 $1,628,610 $1,420,095

Global Technology
Comparative Balance Sheet
For Years Ended December 31, 2008 and 2007
Assets 2008 2007
Cash $34,830 $63,000
Accounts receivable 232,500 298,575
Merchandise inventory 825,480 637,500
Prepaid expenses 22,500 25,500
Plant assets (net) 1,800,000 1,530,000
Total assets $2,915,310 $2,554,575

Liabilities & Stockholders' Equity
Accounts payable $326,400 $339,180
Bonds payable, 10% due 2010 360,000 195,000
Total liabilities $686,400 $534,180
Common stock $600,300 $600,300
Retained earnings 1,628,610 1,420,095
Total stockholders' equity $2,228,910 $2,020,395
Total liabilities & stockholders' equity $2,915,310 $2,554,575

Answer Section

Liquidity ratios:
Acid-test (quick) ratio FORMULA1
Current ratio FORMULA2
Activity ratios:
Accounts receivable turnover FORMULA3
Inventory turnover FORMULA4
Profitability ratios:
Gross profit ratio FORMULA5
Net income to sales FORMULA6
Rate earned on total assets FORMULA7
Rate earned on common stock equity FORMULA8
Coverage ratios:
Debt to total assets FORMULA9
Times interest earned FORMULA10