Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, caluclate the firm’s the… 7

Canadian Bacon Inc. financial statements are presented in the table below.

Based on the information in the table, caluclate the firm’s the net-working capital – to-sales ratio.

Round the answers to two decimal places in percentage form. (Write the percentage sign)

Balance Sheet December 31, 2011

Cash and marketable securities$143,000Accounts payable $278,000

Accounts receivable$354,000Notes payable$87,000

Inventories$672,000Accrued expenses$65,000

Prepaid expenses$12,500Total current liabilities$430,000

Total current assets$1,181,500Long-term debt$284,000

Gross fixed assets$1,675,000Par value and paid-in-capital$228,000

Less: accumulated depreciation$500,000Retained Earnings$1,414,500

Net fixed assets $1,175,000Common Equity1,642,500

Total assets$2,356,500Total liabilities and owner’s equity$2,356,500

Income Statement Year of 2011

Net sales (all credit)$3,136,600.00

Less: Cost of goods sold$2,195,620.00

Selling and administrative expenses$345,000.00

Depreciation expense$146,000.00

EBIT$449,980.00

Interest expense$45,300.00

Earnings before taxes$404,680.00

Income taxes$161,872.00

Net income $242,808.00

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