Question

please show work as necessary and be neat

al 2017 income statement and balance sheet of Mullen, Inc. provided below Roer to the fiscal 20 MULLEN, INC. Balance Sheet 2012 As of December 31, Assets: Cash and cash equivalents Accounts receivable Inventory Current Assets 2016 $ 454,000 595,241 518,543 1,567,784 $ 374,585 419,546 548,521 1,342,652 Property, plant and equipment Less: Accumulated depreciation Property, plant and equipment-net Intangible assets 1,085,741 (388,139) 697 602 748,545 924,652 (297,504) 627,148 698.545 Total assets $3,013,931 $2,668,345 Liabilities Accounts payable Accrued expenses Self-insurance liabilities Income tax payable Current Liabilities $ 452,484 451,421 255,854 295,877 1,455,636 $ 475,152 373,650 179,652 221.236 1,249,690 Long-term note payable Total Liabilities 710,622 2,166,258 655,270 1,904,960 Stockholders' Equity: Common stock Capital in excess of par value Retained earnings Total Stockholders' Equity 51,200 458,000 338,473 847,673 51,200 458.000 254,185 763,385 $3,013,931 $2,668,345 Total liabilities and stockholders' equity MULLEN, INC. EL VON Income Statement For the year ended December 31, 2017 Revenues $2,456,852 1,523,248 Cost of goods sold Gross profit $933,604 Operating expenses Depreciation expense Salary expense Selling expense 90,635 270,254 233,401

Answer 1

Ans.1	Current ratio   =   Total current assets / Total current liabilities
	2017	$1,567,784 / $1,455,636	1.08 : 1
	2016	$1,342,652 / $1,249,690	1.07 : 1
Ans.2	Quick ratio   =   (Total current assets - Inventory) / Total current liabilities
	2017	($1,567,784 - $518,543) / $1,455,636	0.72 : 1
	2016	($1,342,652 - $548,521) / $1,249,690	0.64 : 1
Ans.3	Liabilities to equity ratio   =   Total liabilities / Total stockholder's equity
	2017	$2,166,258 / $847,673	2.56
	2016	$1,904,960 / $763,385	2.50
Ans.4	*Here are no short term debts so the long term notes payable would be considered as total debt.
	Total debt to equity ratio   =   Long term notes payable / Total stockholder's equity
	2017	$710,622 / $847,673	0.84
	2016	$655,270 / $763,385	0.86
Ans. 5	Time interest earned =(Income from operations + Interest expenses) / Interest expenses
		($197,038 + $61,200) / $61,200
		$258,238 / $61,200
		4.22 times